All Else Equal, a More Liquid Stock Will Have a Lower

question 28

Multiple Choice

All else equal, a more liquid stock will have a lower ________.

• A)beta
• B)market premium
• C)cost of capital
• D)Both A and B.
• E)Both A and C.

---

Definitions:

Nominal Damages

A small amount of money awarded to a plaintiff in a lawsuit to recognize a legal wrong suffered, without substantial loss or injury being proved.

Negligence Per Se

A legal doctrine where an act is considered negligent because it violates a statute or regulation.

Product Liability

The area of law in which manufacturers, distributors, suppliers, and retailers are held responsible for any injuries products cause to consumers.

Defenses

Legal arguments and evidence presented by the defendant in a lawsuit or criminal case to contest and refute the claims made by the plaintiff or prosecution.