Security Returns

question 8

Multiple Choice

Security returns

• A)are based on both macro events and firm-specific events.
• B)are based on firm-specific events only.
• C)are usually positively correlated with each other.
• D)A and B.
• E)A and C.

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Definitions:

Product Market

The marketplace in which final goods or services are offered to consumers, businesses, and the public sector.

Supply Curves

Supply curves graphically represent the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing to sell.

Demand And Supply

The fundamental economic model that explains how prices are determined in a market, based on the desires and capabilities of buyers and sellers.

Equilibrium Level

The state where market supply and demand balance each other, and, as a result, prices become stable.