A. None of these answers
B. An increase in expected dividends
C. A reduction in aggregate risk
D. A reduction in the interest rate
E. All of these answers
- Share prices will follow a random walk if ?
- A. shares are overvalued B. people behave irrationally when choosing shares C. markets reflect all available information in a rational way D. shares are undervalued...
- It is difficult for an actively managed investment fund to outperform an index fund because ?
- A. stock markets tend to be inefficient B. all of these answers C. index funds are able to buy undervalued stocks D. actively managed funds trade more often and charge fees for their alleged expertise...
- An increase in the prevailing interest rate ?
- A. increases the present value of future returns from investment and increases investment B. decreases the present value of future return from investment and decreases investment C. decreases the present value of future returns from investment and increase investment D. increases the present value of future returns from investment and decreases investment...
- If people are risk averse, then ?
- A. None of these answers are true B. All of these answers are true C. They dislike bad things more than the like comparable good things D. The utility they would lose from losing a Rs50 bet would exceed the utility they would gain from winning a Rs 50 bet Their utility function exhibit the … If people are risk averse, then ?Read More...
- Which of the following is an example of moral hazard ?
- A. After Gull buys fire insurance, he begins to smoke cigarettes in bed. B. None of these answers demonstrate moral hazard C. Mahmood has been feeling poorly lately so he seeks health insurance D. All of these answers demonstrate moral hazard...