Question
Please help me to answer all these questions! Thank you in advance. 1. When the price of a firm's shares moves 5% when the whole
Please help me to answer all these questions! Thank you in advance.
1. When the price of a firm's shares moves 5% when the whole market moves 2%, it is said that the shares of the firm have a beta of ( ? ) In such a situation, the firm should have (higher / lower / indeterminate) costs of equity than a firm whose share price would move at the same rate as the whole market.
2.
Institutional investors which performs the following function are called ( ? )
- Investment funds typically open only to sophisticated investors with relatively light regulations compared to those of mutual funds, allowing them to employ leverage and take on concentrated and short positions
3.
A security with the following characteristics is called ( ? )
-An asset representing an ownership interest in the business, sometimes subdivided into different classes. The owners of this asset usually have certain rights, including the right to share proportionately in the profits of the business and the right to elect directors and vote on proposals on certain important business decisions.
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