10. Which one of the following is an example of market risk? A firms just launched...

70.2K

Verified Solution

Question

Finance

10. Which one of the following is an example of market risk?
A firms just launched a new product.
The unemployment rate drops to 3.8%.
A firm faces new lawsuit from its customers.
A firm fires its CEO.
2).
A stock is expected to return 8% in an economic boom, 5% in anormal economy, and 3% in a recessionary economy. Which one of thefollowing will decrease the overall expected rate of return on thisstock?
An increase in the probability of a recession occurring
An increase in the rate of return in a booming economy
An increase in the probability of an economic boom
An increase in the rate of return in a recessionary economy
3).
Which one of the following is the slope of the security marketline?
Risk-free rate
Market risk premium
Beta coefficient
Market rate of return

Answer & Explanation Solved by verified expert

4.4 Ratings (764 Votes)

See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

10. Which one of the following is an example of market risk?A firms just launched a new product.The unemployment rate drops to 3.8%.A firm faces new lawsuit from its customers.A firm fires its CEO.2).A stock is expected to return 8% in an economic boom, 5% in anormal economy, and 3% in a recessionary economy. Which one of thefollowing will decrease the overall expected rate of return on thisstock?An increase in the probability of a recession occurringAn increase in the rate of return in a booming economyAn increase in the probability of an economic boomAn increase in the rate of return in a recessionary economy3).Which one of the following is the slope of the security marketline?Risk-free rateMarket risk premiumBeta coefficientMarket rate of return

		A firms just launched a new product.
		The unemployment rate drops to 3.8%.
		A firm faces new lawsuit from its customers.
		A firm fires its CEO.

		An increase in the probability of a recession occurring
		An increase in the rate of return in a booming economy
		An increase in the probability of an economic boom
		An increase in the rate of return in a recessionary economy

		Risk-free rate
		Market risk premium
		Beta coefficient
		Market rate of return