Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with a take home test MULTIPLE CHOICE Choose the one alternative that best completes the statement or answern 19) The the statement or

Need help with a take home test image text in transcribed
MULTIPLE CHOICE Choose the one alternative that best completes the statement or answern 19) The the statement or answers the question rate is the interest to be paid annually on a bond as a percentage of its par v A) face interest B) base C) coupon interest D) compound interest E) none of the above 20) You have just purchased 10 shares of a stock selling at $50 per share. Since that time, the company 20) was found to be in violation of several environmental laws and has several major lawsuits outstanding. Which of the following statements is most cornect? A) You could lose up to your $500 investment B) You could lose more than your $500 investment C) By owning stock in the company. you have also technically violated the law D) You cannot lose your investment based on the actions of the company E) none of the above company, yous have also technically violated the law. 21) The risk that you will not be able to find a buyer at a fair market price, and willwind up having to 21) and will wind up having to 21) sell for less than an asset's worth is called risk. A) call B) liquidity C) inflatioen D) interest 22) ABC Corporation is selling additional shares of common stock. These are new shares of s tock, and 22) have never been sold or traded previously. The selling of these shares would take place in the market. A) quatemary B) primary C) secondary D) tertiary E) none of the above lot of 23) Sally is attempting to purchase 88 shares of Google's stock. Sally is purchasing a(n) stocks A) round B) odd C) square D) margin E) cannot determine from the information provided 24) That portion of a stock's risk or variability that cannot be eliminated through investor diversification is called risk. A) volatility B) unsystematic C) unrealistic D) inflation E) systematic 25) If you bought a 20-year bond issued by the govermment, with a par value of $1,000 and an interest rate of 8%. At maturity you will be returned the principal of- E) $500 C) $1,000 D) $80 A) $1,600 B) $800 A-3

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Topics In Finance

Authors: Iris Claus, Leo Krippner

1st Edition

1119565162, 978-1119565161

More Books

Students also viewed these Finance questions

Question

Organize and support your main points

Answered: 1 week ago

Question

Move smoothly from point to point

Answered: 1 week ago

Question

Outlining Your Speech?

Answered: 1 week ago