All Else Equal,a More Liquid Stock Will Have a Lower

question 15

Multiple Choice

All else equal,a more liquid stock will have a lower ________.

• A) beta
• B) market premium
• C) cost of capital
• D) Both beta and market premium.
• E) Both beta and cost of capital.

---

Definitions:

Merit Rating

A system used to evaluate and grade an employee’s performance, often influencing salary increments and promotions.

Unemployment Tax Rates

Rates set by governments to fund unemployment insurance programs, calculated as a percentage of employer payroll expenses.

Accrued Vacation Benefits

The earned but not yet taken or paid vacation time that is owed to employees, recognized as a liability on the balance sheet.

Estimated Liability

A financial obligation or debt that is anticipated but not yet confirmed in amount or due date.