The Average Amount by Which the Returns on Stocks Exceeds

question 52

Multiple Choice

The average amount by which the returns on stocks exceeds the return on debt securities is referred to as

• A)beta coefficient.
• B)gamma coefficient.
• C)return spread.
• D)equity premium.

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Definitions:

Financing Activities

Transactions and events that affect long-term liabilities and equity of a company, including issuing debt, obtaining loans, or issuing and selling equity securities.

Interest Expense

The financial charge an organization incurs over time for borrowing funds.

Note Payable

A written promissory note wherein the borrower agrees to pay back the lender on demand or at a predetermined future date, along with interest.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows a company receives from its ongoing operations, investment activities, and financing, as well as all cash outflows that pay for business activities and investments during a given period.