Some of the Least Risky Stocks on the Market Are

question 57

Multiple Choice

Some of the least risky stocks on the market are called

• A)blue-chip stocks.
• B)well-known growth stocks.
• C)cyclical stocks.
• D)lesser-known growth stocks.

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Definitions:

Input Price Variability

Fluctuations in the cost of inputs, such as raw materials and labor, that can affect a business's operational expenses and profitability.

Interest Rates

The percentage of principal charged by the lender for the use of its money, affecting loans, mortgages, and savings.

MM Extension

Refers to the extensions of Modigliani and Miller's theory on capital structure, which further explore the impacts of taxes, bankruptcy costs, and other market imperfections.

Tax Shield

A tax shield is a deduction, exclusion, or exemption from taxable income, allowing individuals or entities to pay lower taxes by reducing their taxable income through certain allowable expenses or investments.