This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following statements is correct? (Read 51 times)

kmcolvin

  • Full Member
  • ***
  • Posts: 140
on: Aug 7, 2023
Which of the following statements is correct?

◦

If a company with a high-beta stock merges with a low-beta company, the best estimate of the new merged company’s beta is zero.


◦

The beta of the “average stock” or “market” always changes slightly over time, but the average beta is always equal to 1.


◦

During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may not be close to the “true” or “expected future” beta.


◦

If a newly issued stock does not have a past history that can be used as a basis for calculating beta, then we should always estimate that its beta will turn out to be zero. This is especially true if the company finances with more debt than the average firm.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by kmcolvin on Aug 7, 2023

JulianneMu

  • Full Member
  • ***
  • Posts: 155
Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 39% of students answer this correctly


kmcolvin

  • Member
  • Posts: 140
Reply 2 on: Aug 7, 2023
Excellent

Dnite

  • Member
  • Posts: 297
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Many of the drugs used by neuroscientists are derived from toxic plants and venomous animals (such as snakes, spiders, snails, and puffer fish).

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

Warfarin was developed as a consequence of the study of a strange bleeding disorder that suddenly occurred in cattle on the northern prairies of the United States in the early 1900s.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Correct position when lifting a heavy object off the floor. Correct position when lifting a heavy object off the floor.
Examples of Mission Statements Examples of Mission Statements
How to convert verbal statements into algebraic equations (Part 3) How to convert verbal statements into algebraic equations (Part 3)
Using the measuring device to give the correct dose to children Using the measuring device to give the correct dose to children
Tardigrade wasn't correct, nor was Gastrotricha. What on earth is this asking me. Tardigrade wasn't correct, nor was Gastrotricha. What on earth is this asking me.
Are these the correct answers for finding the derivative using the power rule? Are these the correct answers for finding the derivative using the power rule?
Video: X chromosome inactivation in calico cats

For a complete list of videos, visit our video library