Ceteris paribus, an increase in the government budget deficit will cause the risk premia on corporate bonds to

Select one: a. increase. b. decrease. c. stay the same. d. cannot be determined.

An analyst says that inside information would not have helped investors forecast the collapse of the stock market in 2008. This is true if markets satisfy Select one: a. allocational efficiency. b. weak efficiency. c. semi-strong efficiency. d. strong efficiency.

The earnings for a company are $10 and they are expected to grow at 2% annually. According to the Gordon Growth Model, if the required rate of return is 5%, then the price of the companys stock should be Select one: a. $210. b. $510. c. $525.50. d. none of the above.