Question: Since the market return represents the expected return on an average stock, the market return reflects a certain amount of risk. As a result, there exists a market risk premium, which is the amount over and above the risk-free rate that is required to compensate stock investors for assuming an average amount of risk.
a. True
b. False
Answer: True
Question: In applying utilitarianism, which of the following is the first step?
Answer Options:
Apply free market principles.
Focus on the means to the ends.
Identify the important value.
Identify the act.
Answer: Identify the important value.
Question: The web is an effective filter of information because
Answer Options:
Most web pages are located in exotic locations
Most web pages are used for marketing
Most web pages are created by people or programs with a great interest in ensuring that the content on the pages is correct and engaging
Most web pages are automatically generated by computers
Answer: Most web pages are created by people or programs with a great interest in ensuring that the content on the pages is correct and engaging
Question: Managers should under no conditions take actions that increase their firm’s risk relative to the market, regardless of how much those actions would increase the firm’s expected rate of return.
a. True
b. False
Answer:
Question: Someone who is risk averse has a general dislike for risk and a preference for certainty. If risk aversion exists in the market, then investors in general are willing to accept somewhat lower returns on less risky securities. Different investors have different degrees of risk aversion, and the end result is that investors with greater risk aversion tend to hold securities with lower risk (and therefore a lower expected return) than investors who have more tolerance for risk.
a. True
b. False
Answer:
Question: Which of the following is LEAST likely to be a public good?
Answer Options:
A sunset
A party
A park
An army
Answer: A party
Question: What elements were most responsible for the upward growth of buildings in 19th-century cities?
Answer Options:
Cast-iron construction and new zoning laws
New zoning laws and fire escapes
Fire escapes and elevators
The elevator and structural steel
Answer: The elevator and structural steel
Question: According to Kant, the decision to use environmentally sound more expensive equipment as compared to less expensive environmentally damaging equipment should be based on the following?
Answer Options:
All people should be treated as the means.
In a free market environment, any decision is proper.
Based on the fact that whatever the decision is, it would have little impact.
What the result would be if everybody made the same decision.
Answer: What the result would be if everybody made the same decision.
Question: Compared to all other media, the special feature of the web that makes it useful as a marketing tool is its ability to
Answer Options:
Display visually attractive pages
Play sound along with images and text
Customize information for each individual
Provide correct information
Answer: Customize information for each individual
Question: Ida B. Wells is most associated with ______.
Answer Options:
Leading a national campaign for African American suffrage
Founding the National Association of Colored Women
Leading an international campaign to end lynching
Starting schools for former slaves and their children
Answer: Leading an international campaign to end lynching