Essentials of Corporate Finance (10th Edition)

Chapter 10

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The total return consists of two parts, income, ... more

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Unrealized capital gains are equivalent to selling... more

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The dollar return is the actual amount of dollars ... more

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During the period 1926-1935, the best investment ... more

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Small stocks provide the investor with a higher ... more

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The smallest return for each investment is:Large-... more

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Large stock returns were:More than 30% - 19 times... more

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The positive return streak for:Large stocks: 9 ... more

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The T bill portfolio did not have any negative ... more

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Excess return refers to the difference of return ... more

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The real risk premium on common stock is the ... more

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Nominal risk premium is the rate indicated at ... more

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Higher risk demands a higher return to compensate ... more

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The bear market percentile rank measures the ... more

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Five sectors having the highest percentage ... more

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Variance is calculated by subtracting the average ... more

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For a normal distribution, the probability of ... more

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The probability of long-term corporate bonds ... more

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The second lesson is that the risk will be higher ... more

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To predict the stock market movements over a ... more

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To predict stock market movements over a longer ... more

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In an efficient market, all the stocks in the ... more

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Following are the types of market efficiency:Weak ... more

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4% ; The dividend yield is the amount of profit ... more

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T bills issued by Country U government have a zero... more

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The probability of Stock A earning a negative ... more

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The geometric average return is too low to project... more

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Day to day fluctuation of stock prices can occur ... more

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The average return for:Large-company stocks: 12.40... more

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The standard deviation for the years 1997-2001 for... more

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The investors cannot foresee the stock that can ... more

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The factor responsible is the inability to foresee... more

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Investments in bonds are safer than investments in... more

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In an efficient market, the market value of ... more

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If the mispricing is true, the market is in a weak... more

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The semi-strong efficient markets reflect all the ... more

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As markets become more and more efficient, the net... more

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No, the stock market is not gambling, as it ... more

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The efficient markets state that the price of ... more

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Total Percentage Return: 15.11%Dividend Yield: 2.... more

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Total percentage return = (7.87%)Dividend yield = ... more

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$2,917.50 ; Return refers to the amount earned by ... more

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Real return on long-term government bonds = 2.91%.... more

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The arithmetic average returns for:X1 = 7.60%Y1 = ... more

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Average real risk-free rate: 0.48%.Average real ... more

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It is observed that the T-bill rates are the ... more

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6.58% ; Calculate the number of years for maturity... more

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2.21% ; Calculate the capital gain/loss yield by ... more

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APR: 31.92% EAR: 35.95%. ; Calculate the return on... more

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7.48% ; Identify the information needed to compute... more

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The range of return is -1.90% to 14.70%, under  ... more

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The range of return is -7.70% to 31.90%, under the... more

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Year 5 return: 18%Standard deviation: 15.72% ; ... more

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 Arithmetic Average Return  = 10.33%Geometric ... more

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Arithmetic return: 10.09%Geometric return: 9.71... more

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2.92% ; Calculate the annual coupon payment by ... more

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The probability is 15.87%, that the long-term ... more

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The probability is 0.43% that the investment will ... more

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An investor would not lose more than 100% of his ... more

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A normal distribution is a type of frequency ... more

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Average Annual Interest Rate of 2017: 2.33%Average... more

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The advantages of investing in mutual funds over a... more

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Company S will contribute up to 5% of the ... more

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The advantages of investing in a large-company ... more

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The decision of investing in the small-cap fund ... more

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The sharpe ratio for:Company A's Index Fund = 0.... more

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