Pete Is Obsessed with Putting Things in Order

question 187

Multiple Choice

Pete is obsessed with putting things in order.Among other things,he alphabetizes his old record collection,neatly folds and organizes his clothes by type and color,and maintains all of his financial records in strict chronological order.He is constantly checking these items to make sure that they are in order,and he feels great distress when they are not.It is likely that Pete has:

• A)claustrophobia.
• B)obsessive-compulsive disorder.
• C)generalized anxiety disorder.
• D)agoraphobia.

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Definitions:

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.

Book Value

The net value of a company's assets minus its liabilities, often used to assess a company's financial health.

Capital

Financial assets or the financial value of assets, such as cash, used by a company to fuel its business operations.

CAPM

The Capital Asset Pricing Model, a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.