The more you have invested in a stock, the more likely you are to be interested in monitoring the company's management to ensure they are maximizing shareholder wealth.   Question 28 options:   True   False

QUESTION 9 If markets are semi-strong efficient, which of the following situations is most likely to yield abnormal returns? O 1. Following the advice of your stockbroker's newsletter O 2. Identifying a pattern in a company's historical stock price O 3. Obtaining insider information Analysing a company's earning report

Before you put your money down and purchase a stock, what should you know about it?

Suppose a public company compensates its risk averse managers with stock awards rather than stock options, and the company's stock price has fallen precipitously. In this setting, using stock awards will induce more risk taking by management versus the use of stock options.   Question options:   a) True   b) False

Select all the TRUE statements     The goal of the corporate financial manager is to maximize the firm’s profit.     The ask price of a stock is higher than the bid price.     The bid price is the price at which an investor buys the stocks at.     The are three main determinants of stock prices: future cash flow, timing of the cash flow, and risks

It is usually possible to reduce the risk of investing in the stock market by buying a wide range of stockS *A. TrueB. False

It is usually possible to reduce the risk of investing in the stock market by buying a wide range of stockS*A. TrueB. False

If you have the chance to invest in the stock market, what company will you invest in and why? Explain your methods or steps in choosing that company.

6

Explain why the risk premium of a stock does not depend on its diversifiable risk.       Question content area bottom Part 1 ​(Select the best choice​ below.)     A. Investors​ don't care about diversifiable risk and so​ don't hold any.   B. Investors care about diversifiable​ risk, but hedge their positions so they​ don't demand a risk premium.   C. Although investors must hold diversifiable​ risk, they​ don't care about​ it, so there is no risk premium.   D. Investors can remove diversifiable risk from their portfolio by diversifying. They therefore do not demand a risk premium for it.