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Rich Is Comparing the Quality and Features of Facebook to Those

question 31

Multiple Choice

Rich is comparing the quality and features of Facebook to those on Google+.This is an example of the ____ of quality.


Definitions:

Risk Free Rate

The risk-free rate is the theoretical rate of return of an investment with zero risk, often represented by the yield on government bonds.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates higher risk and potential return, while a beta less than 1 implies less risk and return.

Cost of Debt

The effective rate that a company pays on its current debt, including loans, bonds, and any other form of debt.

Cost of Equity

The theoretical earnings paid by a business to its equity holders as compensation for the risk they take by investing.

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