A Factor Leading to Price Increases Is Overdemand by the Market

question 94

True/False

A factor leading to price increases is overdemand by the market for the company's product.

---

Definitions:

Standard Deviation

Standard deviation measures the amount of variation or dispersion of a set of values, indicating the volatility or risk associated with a particular investment.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than one indicates greater volatility.

Required Rate of Return

The minimum annual percentage return an investor expects to achieve from an investment, considering its risk.

Market Risk Premium

The additional return investors expect to receive from an equity investment over the risk-free rate, compensating for taking on higher risk.