What rule is important to remember when evaluating risk and return

Suppose that there are 50 firms in a monopolistically competitive industry in country A and 50 firms in the same monopolistically competitive industry in country B.

Suppose the interest rate on a 1-year T-bond is 5.00% and that on a 2-year T-bond is 6.00%. Assume that the pure expectations theory is NOT valid, and the MRP is zero for a 1-year T-bond but 0.40% for a 2-year bond.

Lewis Inc. owns 40% of Morgan and applies the equity method. During the current year, Lewis buys inventory costing $400,000 and sells it to Morgan for $700,000. At the end of the year, Morgan still holds $140,000 of this merchandise.

Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments follow.

Southern home cookin' just paid its annual dividend of $0.65 a share. the stock has a market price of $13 and a beta of 1.12. the return on the u. s. treasury bill is 2.5 percent and the market risk premium is 6.8 percent.

Which of the following would not be included in calculating the incremental cash flow for a project? The firm expects sales of the new product to be $5,000,000 per year.

The type of uncertainty that is in operation when an entrepreneur takes a gamble on an as yet non-existent market is called ambiguity. True False

The premise of sociobiology with regard to humans is that:

What is the term utilized when union workers refuse to work due to contractual disagreements? A. Sunshine law B. Strike C. Labor law violation D. WPA Act

Your brother has asked you for a loan and has promised to pay you $9,800 at the end of three years. If you normally invest to earn 6.