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Author Question: No investment should be undertaken unless the expected rate of return is high enough to compensate ... (Read 57 times)

Rafic Kaaki

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on: Aug 7, 2023

Question 1

Market risk is caused by random events such as lawsuits and strikes. Because these events are random, their effects on a portfolio can be eliminated by diversification.

◦ true
◦ false

Question 2

No investment should be undertaken unless the expected rate of return is high enough to compensate the investor for the perceived risk of the investment. So, in equilibrium, the expected rate of return on a stock must equal its required return.

◦ true
◦ false
Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by Rafic Kaaki on Aug 7, 2023

Deonnak85

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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.
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Rafic Kaaki

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Reply 2 on: Aug 7, 2023
Gracias!

covalentbond

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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