Multiple Choice
Many financial managers use market risk premiums that are closer to 5%,which is lower than historical averages,because investors require a ________ risk premium for holding risky securities than in the past.
A) lower
B) higher
C) similar
D) specific
E) consistent
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q35: When a firm is evaluating the purchase
Q36: A firm's cost of debt is the
Q61: Outstanding debt of Home Depot trades with
Q62: A firm incurs $70,000 in interest expenses
Q63: Anheuser Busch,a manufacturer of beverages,is planning to
Q64: A firm has $56 million of common
Q66: IBM expects to pay a dividend of
Q67: Your estimate of the market risk premium
Q68: Asterix Corp has debt with a book
Q70: Verano Inc.has two business divisions-a software product