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choose the right answer for the following questions. at 25% of her money into growth stocks, another 25% in government bonds, 10% in gold, and
choose the right answer for the following questions.
at 25% of her money into growth stocks, another 25% in government bonds, 10% in gold, and the rest in he bank for emergencies. Lisa's sppurent objective is: A) speculation. B) concentration. C) diversification. D) risk inversion. 43. Buying stock on margin allows an investor to borrow funds and buy shares of a stock that hopefully then appreciates. This the potential return to the investor and A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases th risk 44. Every time someone sells a stock believing that the price will soon decrease, somcone else buys the security A) believing that the price will increase. B) hoping that the price will decrease. C) in order to increase the price. D) trying ta decrease the price. 45. Which of the following companies faces the problem of undercapitalization? A) A large corporation that has been hit with a major lawsuit because one of its products has a design flaw that has led to serious injuries. B) A small new company struggling because it has insufficient start-up funds. c) A medium sized company that has decided to buy out a smaller competitor. D) An electric utility that has recently experienced a significant increase in the cost of coal and labor. 46. Akiko realizes the importance of developing a business. Akiko knows of no better way of establishing revenue expectations and allocating resources in order to achieve the goals of her firm. A) market prediction B) financial forecast C) budget D) cash flow analysis afor her interior design Step by Step Solution
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