1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sergeinik [125]
3 years ago
7

A company faces two kinds of risk. An example of a firm-specific risk is the risk that a competitor might enter its market and t

ake some of its customers. An example of a market risk is the risk that the economy might enter a recession, reducing sales. True or False: The company's shareholders would more likely demand a higher return due to the stock's firm-specific risk because it affects only that particular stock.
Business
1 answer:
denis23 [38]3 years ago
8 0

Answer:

true

FALSE

Explanation:

Systemic risk are risk that are inherent in the economy. They cannot be diversified away. They are also known as market risk. examples of this risk include recession, inflation, and high interest rates. Investors should seek compensation for systemic risk. Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

Non systemic risk are risks that can be diversified away. they are also called company specific risk. Examples of this type of risk is a manager engaging in fraudulent activities.

You might be interested in
Driving consists of a ______________ process that is used hundreds of times per mile traveled
abruzzese [7]

Driving consists of a <u>"decision making" </u>process that is used hundreds of times per mile traveled .


Driving a commercial vehicle requires your complete consideration since it is a decision-making process.

These decisions turn out to be second nature as an individual has all the more driving background.  

While working a commercial vehicle, the driver must settle on the right choice in a brief instant. Inability to settle on the right choice can put the motoring open and the business driver in danger of damage or demise.


6 0
3 years ago
Let illustrate what you you know about materiality concept.
guapka [62]

Answer:

rfb rgab rko

its a study meeting of girls i am also girl here we only study boy were not allowed because he disturb here we only study its safe meeting of girl here we only study

5 0
2 years ago
In constructing a common-size income statement, depreciation will be______. A. omitted since it is a noncash expense. B. express
Naddika [18.5K]

Answer:

B. expressed as a percentage of sales.

Explanation:

The common size income statement is the income statement where n each line the item on the income statement should be expressed as a percentage of sales

In the given options, the option B is correct as it shows that the depreciation would be expressed in sales percentage

Therefore all other options are wrong

3 0
3 years ago
Land was acquired in 2021 for a future building site at a cost of $40,000. The assessed valuation for tax purposes is $27,000, a
Aleks [24]

Answer:

The land should be reported in the financial statements at $40,000

Explanation:

At the time of recording of the fixed assets, the fixed assets should be recorded at purchase cost or historical price

Since in the question, the land was purchased at $40,000 and moreover, it is assessed for the tax purpose for $27,000 and by other appraisers it was valued at $48,000 plus there is an offer of cash payment for $46,000

But at the time of recording, the balance sheet would show at the purchase price i.e $40,000

8 0
3 years ago
Suppose that two factors have been identified for the U.S. economy: the growth rate of industrial production, IP, and the inflat
Delicious77 [7]

Answer:

11.3%

Explanation:

Given that,

Growth rate of industrial production, IP = 4%

Inflation rate, IR = 3.0%

Beta = 1.1 on IP

Beta = 0.5 on IR

Rate of return = 7%

Before the changes in industrial production and inflation rate:

Rate of return = α + (Beta on IP) + (Beta on IR)

7% = α + (1.1 × 4%) + (0.5 × 3%)

7% = α + 4.4% + 1.5%

7% - 4.4% - 1.5% = α

1.1% = α

With the changes:

Rate of return:

= α + (Beta on IP) + (Beta on IR)

= 1.1% + (1.1 × 7%) + (0.5 × 5%)

= 1.1% + 7.7% + 2.5%

= 11.3%

Therefore, the revised estimate of the expected rate of return on the stock is 11.3%.

6 0
3 years ago
Other questions:
  • A company buys tracking software for its warehouse which, along with the computer system and ancillaries to run it, will cost $1
    7·1 answer
  • P10-45. Analyzing and Interpreting Effects of TCJA Tax Law Changes. Pfizer Inc. reports the following footnote disclosure in its
    14·1 answer
  • When Wal-Mart sells a package of diapers, the company captures data on that sale at its point-of-sale terminal and transmits tha
    6·1 answer
  • If the price elasticity of demand for Mountain Dew is 4.4 then
    12·1 answer
  • In 1679 new hamisphere was
    13·1 answer
  • Crane uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (ret
    15·1 answer
  • Describe at least one global trend that you think offers a business opportunity in the global marketplace?
    6·2 answers
  • Company Z is just starting to make a brand new product it has never made before. It has completed two units so far. The first un
    15·1 answer
  • What cost of living?<br> Need help please
    6·1 answer
  • When preparing a presentation, you want to learn about the audience so that you can tailor your message accordingly. What factor
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!