Par Value Represents the

question 41

Multiple Choice

Par value represents the

• A)arbitrary amount that establishes a minimum price for the stock when it is first issued.
• B)current market price of the stock.
• C)amount for which any treasury shares have been acquired by the corporation.
• D)amount for which treasury shares may be reissued.

---

Definitions:

Beta

A measure of a stock's volatility in relation to the overall market, indicating the stock's sensitivity to market movements.

Risk-Free Rate

A hypothetical interest rate associated with an absolutely risk-free investment, typically exemplified by government securities.

Market Portfolio

A theoretical bundle of investments that includes all available assets in the market, with each asset weighted according to its market capitalization.

Risk-Free Rate

The expected profit from an investment that carries no risk of losing money, frequently depicted through the interest rate of government bonds.