The News That Influences the Unanticipated Rate of Return on a Stock

question 157

Multiple Choice

The news that influences the unanticipated rate of return on a stock is called the:

• A) Surprise.
• B) Expected rate of return.
• C) Beta.
• D) Systematic risk.
• E) Asset-specific risk.

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Definitions:

GAAP

Generally Accepted Accounting Principles represent the customary set of rules for financial accounting that are utilized in a particular jurisdiction.

Principles-based Approach

A method of regulation that emphasizes the spirit of the laws and principles behind them, rather than rigid adherence to specific rules.

Lease Capitalization

The process of recording a lease as an asset and a corresponding liability on the lessee's balance sheet, particularly for long-term leases.