Create an account
Which of the following statements regarding capital budgeting is correct?
Capital budgeting is the process through which a firm decides if an investment is good or bad.
Which of the following is TRUE regarding the calculation of NPV (Net Present Value)?`
NPV uses Net Cash Flow in its calculation rather than Net Income
Which of the following is true about IRR as an investment rule?
Invest if IRR is greater than a predetermined rate of return.
Which of the following is true concerning the profitability index?
It is used to identify projects that will receive the best return associated with the amount of dollars invested.
Which of the following is true concerning the alpha of a portfolio
Alpha is a measure of how a stock performed relative to its expected performance.
Stocks that perform worse than their expected return will have a negative alpha.
Behavioral finance theorists assert that:
Investors are poorly informed and they tend to over or under react to news.
Investors hate to lose and hold on to bad investments longer than they should.
Which form of market efficiency states that stock prices reflect the information contained in the history of past stock prices and trading volume?
Which form of market efficiency states that stock prices reflect all information, including private information?
Please allow access to your computer’s microphone to use Voice Recording.
Having trouble? Click here for help.
We can’t access your microphone!
Click the icon above to update your browser permissions and try again
Reload the page to try again!Reload
Press Cmd-0 to reset your zoom
Press Ctrl-0 to reset your zoom
It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.
Please upgrade Flash or install Chrome
to use Voice Recording.
For more help, see our troubleshooting page.
Your microphone is muted
For help fixing this issue, see this FAQ.
Star this term
You can study starred terms together