Ramya Is a Business Analyst by Profession

question 15

Multiple Choice

Ramya is a business analyst by profession. She works in a highly stressful environment. Her manager often yells at her and fails to appreciate her when she completes her tasks on time. Based on the results of a national survey of U.S. adults by the American Psychological Association in 2007, Ramya

• A) is likely to view stress as a positive thing.
• B) will be less productive because of stress.
• C) is likely to accept a promotion.
• D) will not make important career decisions based on stress.

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Definitions:

Capital-Asset-Pricing Model

A model used in finance to determine a theoretically appropriate required rate of return of an asset, considering its risk relative to the market.

Dividend Growth Approach

A method of valuing a company's stock based on the assumption that dividends will grow at a constant rate indefinitely.

Risk Premium Approach

A method of calculating the required rate of return for an investment by adding a premium for the investment's risk to the risk-free rate of return.

Capital Budgeting

The process a business undergoes to evaluate potential major projects or investments, analyzing the expected cash flows to determine whether they meet a set investment criteria.