The Major Factors That Determine the Market Value of a Company's

question 8

Multiple Choice

The major factors that determine the market value of a company's shares of stock include the .

• A)risk of its cash flows
• B)timing of its cash flows
• C)book value of its assets
• D)risk of its cash flows and the timing of its cash flows

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, indicating how spread out the values are from the mean.

Index Fund

A fund created to adhere to specific predefined criteria, enabling it to mirror the performance of a chosen collection of investments.

PHStat

A software package that enhances Microsoft Excel with statistical analysis capabilities.

Variance

A measure of how spread out a set of numbers is, indicating the variability from the mean.