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Which of the following statements is TRUE about STOCKS? A. Unlike bonds, stocks have finite maturity dates. B. When buying stocks investors pay the bid

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Which of the following statements is TRUE about STOCKS? A. Unlike bonds, stocks have finite maturity dates. B. When buying stocks investors pay the "bid" price. C. A bear market is a prolonged rising market, one in which stock prices in general are increasing. D. The limited liability feature of equities makes it less risky to invest in stocks. Which of the following is TRUE about RISK & RETURN? O A. Rational risk-averse investors will always choose the investment with the lowest reward-risk ratio. O B. In the CAPM model, if the MRP is 6% and the risk-free rate is 3%, then the expected return on the market would be 3%. OC. Systematic risk can be reduced through diversification. OD. For a holding period of 2 years, the annualized HPR would be less than the 2 year HPR. A falling WACC the values of the firm's future cash flows. O A. has no effect on OB. keeps constant O C. increases O D. reduces

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