Which of the Following Factors Are Commonly Considered by Capital

question 9

Multiple Choice

Which of the following factors are commonly considered by capital markets research? i.Accounting earnings
Ii) Unexpected earnings
Iii) Asset pricing
Iv) Market efficiency

• A)i.,ii.and iv.only.
• B)None of them.
• C)i.and iv.only.
• D)All of them.

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Definitions:

IRR

Internal rate of return; a financial metric used to assess the profitability of investments by calculating the rate of return where net present value of all cash flows (both positive and negative) from a project equals zero.

Project

A temporary endeavor undertaken to create a unique product, service, or result.

Payback Criterion

A capital budgeting method that measures the time required to recoup the initial investment in a project.

Mutually Exclusive

Referring to events or choices that cannot occur or be taken simultaneously; selecting one option excludes the availability or selection of the other.