According to Fass, Heilbrun, and Fretz, There Is a Large

question 23

Multiple Choice

According to Fass, Heilbrun, and Fretz, there is a large and growing literature with regard to risk factors that are related to anti-social behavior.
_______________risk factors are typically historical, unlikely to change, and not amenable to intervention efforts; dynamic factors, by contrast, may change over time.

• A) static
• B) dynamic
• C) lethargic
• D) constant

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Definitions:

Component Costs of Capital

The individual expenses associated with the different sources of capital, such as the cost of equity, debt, and preferred stock.

Market-Determined Variables

Economic factors such as prices, wages, and interest rates that are decided by the forces of supply and demand in a free market.

Required Returns

The minimum profit or yield that investors demand for investing in an asset, considering the risk involved.

Risk Premium

The additional return an investor requires to invest in an asset over a risk-free rate, compensating for the risk of the investment.