Stock Returns Can Be Explained by the Stock's _________ and the Stock's

question 13

Multiple Choice

Stock returns can be explained by the stock's _________ and the stock's __________.

• A) beta; unique risk
• B) beta; market risk
• C) unique risk; firm-specific risk
• D)aggressive risk; defensive risk

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Definitions:

Legal Expenses

Costs incurred by an entity related to the legal services provided for the business, such as attorney fees, litigation expenses, and other legal consultancy fees.

Depletion

Depletion is an accounting method used to allocate the cost of extracting natural resources such as minerals, oil, and gas from the earth over the period they are consumed.

Straight-Line Method

A method of calculating depreciation of an asset, which spreads the cost evenly across its useful life.

Units-of-Activity Method

A depreciation method that allocates costs based on the actual usage or output of the asset rather than time.