Unlike the CAPM, the APT does not assume borrowing and lending at the risk-free rate.
Why have dividends historically been important in the valuation of common stock?
Under its new system, Morningstar ranks funds against comparable funds in
approximately 50 categories.
Which of the following regarding investors and the CMT is true?
Investors recognize that all the assumptions of the CMT are unrealistic.Investors
recognize that all of the CMT assumptions are not unrealistic.Investors are not aware of
the assumptions of the CMT model.Investors recognize the CMT is useless for
individual investors.
The short interest ratio is found by dividing the number of shares sold short by the
average:
a. number of shares outstanding in the market.
b. daily volume of trading on the exchange.
c. number of stocks reaching new lows.
d. daily number of stocks bought long.
Liquidity risk:
is the risk that investment bankers normally faceis lower for small OTC stocks than for
large NYSE stocksis a risk associated with secondary market transactionsincreases
whenever interest rates increase