When a Color Is Associated with Hot or Cold We

question 1

Multiple Choice

When a color is associated with hot or cold we refer to this as color ________.

• A) personality
• B) value
• C) tint
• D) temperature
• E) harmony

Grasp the concept of expected returns and their relation to investment risk.

Know the differences between equity and debt in terms of risk.

Understand the role of diversification in managing investment risk.

Recognize the measures of risk such as standard deviation, variance, and the coefficient of variation.

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Definitions:

Stock Price

Stock price is the current market price of a share of stock, reflecting the value the market places on a company.

Book Value

The net value of a company's assets found on its balance sheet, and calculated as total assets minus intangible assets and liabilities.

Equity Multiplier

A financial ratio indicating the portion of a company's assets that are financed by stockholder's equity.

Total Debt

The sum of all short-term and long-term liabilities that a company owes, indicating the total amount of borrowed funds.