What is Beta? A. A less significant market measure than Alpha. B. An old-fashioned format for video tapes, still popular to this day. C. A measure of a specific company's systematic risk, compared to the systematic risk of the entire market of common stocks. D. A greek letter that has little or no significance to stock risk. The Weighted Average Cost of Capital (WACC) of a corporation is A. the weighted average cost of debt capital and equity capital. B. a "hurdle rate" or minimum rate of return that the company must earn on its capital investments. C. a theoretical concept that has little application in the real world. D. is derived, in part, from the interest rate on government bonds, beta, and the historical excess return of common stocks. E. A,B and D When assessing the total risk of a common stock investment, what two types of risk exist? A. Investment Risk and Interest Rate Risk B. Expected Risk and Unexpected Risk C. Scenario Risk and Simulation Risk D. Systematic Risk and Unsystematic Risk The Risk-Return trade-off states that A. investors are risk-adverse and will not invest in risky investments. B. all investment risk can be measured by the actual return of that investment. C. as the expected return of an investment rises, the risk of that return increases as well. D. investment return moves inversely to investment risk