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Which of the following statement is not correct about risk and return? Quickly!!!!!!! 17. Which of the following statements is NOT correct about Risk and
Which of the following statement is not correct about risk and return? Quickly!!!!!!!
17. Which of the following statements is NOT correct about Risk and Return? A. Higher risk is usually associated with higher return. B. Risk-adjusted rate of return used in DDM is adjusted such that it contains no risk drvery C. Facebook zero-coupon corporate bond must sell at a lower price than equivalent treasury STRIPS, assuming they have the same face value and same maturity D. The discount rate used in DDM is higher than treasury spot rate An investor purchases the bonds of JD Corp., which pay an annual coupon of annual yield to maturity of 7%. The bonds will most likely be selling at: A. A discount 18. 10% and mature in 10 years, at an B. A premium C. Par D. depends on market price 19. About capital budgeting methods, which statement is NOT correct? A. A shorter payback period is preferred over a longer payback period B. If the IRR exceeds the required return, the profitability index will be greater than 1.0 C. The net present value is computed using IRR. D. If a project generates a return that is equal to the required return, the project's NPV will be zero. 20. Which of the following statement about risk is NOT correct? A. Diversifiable risk, asset-specific risk and unique risk are synonyms to unsystematic risk B. Decrease in corporate tax rates is an example of systematic risk C. higher total risk is compensated with higher average (expected) return D. A firm's warehouse fire is an example of unsystematic risk A $1,000 face value bond currently has a yield to maturity of 6.69 percent. The bond matures in th pays interest annually. The coupon rate is 7 percent. What is the current price of this bond? $949.60 1,005.26 1,008.18 $1,010.13 ch statement about the term structure of interest rates is NOT correct? ots spot rates as a function of maturities ally stays flat, but can take many shapes from time to time umped when intermediate-term pure discount bonds have a lower return than eith -term bonds Step by Step Solution
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