Congressional Elections Differ from Those for the Presidency Because

question 120

Multiple Choice

Congressional elections differ from those for the presidency because

• A)most candidates are celebrities.
• B)most candidates are not well known.
• C)congressional races attract more media attention.
• D)incumbency is relatively unimportant in Congress.
• E)fewer people vote in presidential elections.

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Definitions:

Sensitivity Analysis

Indicates exactly how much net present value will change in response to a given change in an input variable, other things held constant. Sensitivity analysis is sometimes called “what if” analysis because it answers this type of question.

Stand-alone Risk

The risk associated with a specific project or investment, considered independently from the broader company or portfolio risks.

NPV

Net Present Value; a calculation that compares the value of all cash inflows and outflows of a project or investment using a discount rate.

WACC (Weighted Average Cost of Capital)

A calculation of a firm's cost of capital in which each category of capital is proportionately weighted, including equity and debt.