Security Returns

question 87

Multiple Choice

Security returns

• A) are based on both macro events and firm-specific events.
• B) are based on firm-specific events only.
• C) are usually positively correlated with each other.
• D) are based on firm-specific events only and are usually positively correlated with each other.
• E) are based on both macro events and firm-specific events and are usually positively correlated with each other.

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Definitions:

Horizontal Curve

A curve on a graph that shows an unchanged value over time or is parallel to the horizontal axis.

Product Demand

The desire and willingness of consumers to purchase a specific quantity of a good or service at a given price over a specific period.

Resource Prices

Costs associated with the inputs used in the production of goods and services, such as materials and labor.

Economic Profits

represent the difference between a firm's total revenues and its total costs, including both explicit and implicit costs, reflecting excess earnings over opportunity costs.