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BEC Financial Management Review 6

  1. What is the expected total return?
    • The expected total return is the expected
    • dividend yield plus the expected capital gain or loss yield.
  2. The term -------------------- describes a stock
    with constant dividends.
    • The term zero growth stock describes a stock
    • with constant dividends.
  3. What does the term zero growth stock mean?
    • The term zero growth stock describes a stock
    • with constant dividends.
  4. The ----------------------- is the actual
    dividend yield plus the actual capital gain or loss yield.
    • The actual total return is the actual dividend
    • yield plus the actual capital gain or loss yield.
  5. ---------- is the exposure to some unfavorable
    event.
    Risk is the exposure to some unfavorable event.
  6. There are 2 broad categories of risk connected
    with stocks, what are they?
    Market risk and company – specific risk.
  7. What is market risk?
    • Market risk is the risk of the changing stock
    • market at large. Market risk cannot be eliminated by diversification, it can be
    • eliminated only by remaining out of the market.
  8. ------------------------ is the risk of the
    changing stock market at large. ---------------------- cannot be eliminated by
    diversification, it can be eliminated only by remaining out of the market.
    • Market risk is the risk of the changing stock
    • market at large. Market risk cannot be eliminated by diversification, it can be
    • eliminated only by remaining out of the market.
  9. What is company specific risk?
    • Company-specific
    • risk is the risk that anyone one company will suffer losses.   Company specific risk can be eliminated by holding a diversified portfolio.
  10. -------------------------------------------- is
    the risk that anyone one company will suffer losses.   ------------------------------------- can be eliminated by holding a diversified portfolio.
    • Company-specific
    • risk is the risk that anyone one company will suffer losses.   Company specific risk can be eliminated by holding a diversified portfolio.
Author
Joens1313
ID
300130
Card Set
BEC Financial Management Review 6
Description
BEC Financial Management Review 6
Updated

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