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Special Exercises
Match the following.You may use a response once,more than once,or not at all.
-The CEO asked the vice presidents to leave the room to prepare an oral report on resource needs for the next quarter.She then asks them to return to her office after lunch.
Capital Gains
The profit earned from the sale of assets or investments when the selling price exceeds the purchase price.
CAPM
Capital asset pricing model. A statistical model of the investment world aimed at explaining how required returns are determined in financial markets and thereby how stock prices are set. Also see SML.
Risk-Free Interest
The return on investment with no risk of financial loss, typically associated with government bonds.
Firm's Beta
A measure of a stock's volatility in relation to the overall market, indicating the stock's risk level.
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