(Consider This) Which of the following statements is true about U.S. firms? Multiple Choice The life expectancy of a U.S. firm is approximately 22 years. Over bankrupt within the first five years after starting up. Over half are bankrupt within the first two years after starting up. Nearly 65 percent last 10 years or more.
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
(Consider This) Which of the following statements is true about U.S. firms? Multiple Choice The life expectancy of a U.S. firm is approximately 22 years. Over bankrupt within the first five years after starting up. Over half are bankrupt within the first two years after starting up. Nearly 65 percent last 10 years or more.
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