Firms Having a Higher Expected Return Have a Higher

question 30

Multiple Choice

Firms having a higher expected return have a higher:

• A) level of expected risk.
• B) dividend yield.
• C) market value of equity.
• D) degree of certainty concerning their returns.

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Definitions:

Neuroticism

A trait characterized by anxiety, fear, moodiness, worry, envy, frustration, jealousy, and loneliness.

Extraversion

A personality trait characterized by outgoing, sociable, and energetic behavior.

Ability Traits

Characteristics that determine an individual's potential to perform tasks or acquire skills.

Factor Analysis

A statistical method used to describe variability among observed, correlated variables in terms of a potentially lower number of unobserved variables called factors.