Minter Is a Small Software Technology Firm

question 27

Multiple Choice

Minter is a small software technology firm. To create equal opportunities in the workplace, the management of Minter wants to hire more African Americans, Asian Americans, and Hispanics. This scenario illustrates the concept of _____.

• A) ethnocentrism
• B) relativism
• C) affirmative action
• D) social stratification

---

Definitions:

Cost of Equity

The hypothetical payment made by a business to its equity holders as a reward for the risk involved in investing their money.

Risk-Free Rate

The theoretical rate of return of an investment with no risk of financial loss.

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates that the stock's price tends to be more volatile than the market.

Cost of Equity

The yield a company needs to determine whether an investment satisfies its capital return criteria.