An Emphasis on External Equity Is Most Important For

question 45

Multiple Choice

An emphasis on external equity is most important for:

• A) large, global corporations.
• B) established firms in highly stable markets.
• C) newer, smaller firms in quickly changing markets.
• D) privately owned firms in highly competitive industries.

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Definitions:

Expected Return

The predicted profit or loss from an investment, considering both the likelihood and the impact of various outcomes.

Variance

A measure of the spread between numbers in a data set, showing how far each number in the set is from the mean and thus from every other number in the set.

Recession

A noticeable drop in economic performance affecting the entire economy, enduring longer than several months, usually evident in real GDP, real income, employment, industrial output, and wholesaleretail sales.

Variance

A statistical measurement of the spread between numbers in a data set, indicating how much the numbers differ from the average.