Test Bank for Corporate Communication, 18th Edition by Paul A Argenti.pdf

CorporatedFinance,d12ed(Ross)
Chapterd10d LessonsdfromdMarketdHistory

1) AlphadIndustriesdstockdsolddford$39dadsharedatdthedbeginningdofdthedyear.dDuringdthedyear,dthedc
ompanydpaiddaddividenddofd$3dadsharedanddthendendeddthedyeardwithdadstockdpricedofd$37.dThedcha
ngedindthedstockdpricedisdbestddescribeddasda:
A) capitaldgain.
B) positivedtotalddollardreturn.
C) capitaldloss.
D) negativedtotalddollardreturn.
E) negativeddividenddyield.

Answer:d CdDifficul
ty:d1dEasy
Section:d 10.1dReturnsd
Topic:d TotaldreturndBl
oom's:d Remember
AACSB:d ReflectivedThinkingdAccessi
bility:d KeyboarddNavigation

2) Thedcapitaldgainsdyielddplusdtheddividenddyielddondadsecuritydisdcalleddthe:
A) variancedofdreturns.
B) geometricdreturn.
C) averagedperioddreturn.
D) currentdyield.
E) totaldreturn.

Answer:d EdDifficult
y:d1dEasy
Section:d 10.1dReturnsd
Topic:d TotaldreturndBl
oom's:d Remember
AACSB:d ReflectivedThinkingdAccessi
bility:d KeyboarddNavigation




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,3) Adportfoliodofdsmall-
companydcommondstocks,dasduseddindthisdcourse,disdbestddescribeddasdthedstocksdofdthedfirmsdwhic
h:
A) representdthedsmallestdtwentydpercentdofdthedcompaniesdlisteddondthedNYSE.
B) havedgonedpublicdwithindthedpastdfivedyears.
C) aredtoodsmalldtodbedlisteddondthedNYSE.
D) aredincludeddindthedS&Pd500dindex.
E) tradedpubliclydford$5dadsharedordless.

Answer:d AdDifficul
ty:d1dEasy
Section:d 10.2dHoldingdPerioddReturnsdT
opic:d Assetdclasses
Bloom's:d Rememberd AACSB
:d ReflectivedThinking
Accessibility:d KeyboarddNavigation

4) Baseddondthedperioddofd1926dthroughd2017,d
havedtendeddtodoutperformdotherdsecuritiesdoverdthedlong-term.
A) U.S.dTreasurydbills
B) large-companydstocks
C) long-termdcorporatedbonds
D) small-companyd stocks
E) long-termdgovernmentdbonds

Answer:d DdDifficul
ty:d1dEasy
Section:d 10.2dHoldingdPerioddReturnsdT
opic:d HistoricaldperformancedBloom's:d
Understand
AACSB:d ReflectivedThinkingdAccessi
bility:d KeyboarddNavigation

5) Baseddondthedperioddofd1926dthroughd2017,dU.S.dTreasurydbillsdhavedproduceddannualdratesdofdr
eturndthat:
A) rangeddfromd−1dpercentdtod+15dpercent.
B) rangeddfromd−1dpercentdtod+5dpercent.
C) werednegativedonlydduringdthedGreatdDepression.
D) havedalwaysdbeendpositive.
E) neverdexceededd6dpercent.

Answer:d DdDifficul
ty:d1dEasy
Section:d 10.2dHoldingdPerioddReturnsdT
opic:d HistoricaldperformancedBloom's:d
Understand
AACSB:d ReflectivedThinking
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,Accessibility:d KeyboarddNavigation

6) Anotherdtermdthatdrefersdtodthedaveragedratedofdreturndisdthe:
A) variance.
B) standardddeviation.
C) realdreturn.
D) mean.
E) histogram.

Answer:d DdDifficul
ty:d1dEasy
Section:d 10.3dReturndStatisticsd
Topic:d PortfoliodreturndBloom's
:d Remember
AACSB:d ReflectivedThinkingdAccessi
bility:d KeyboarddNavigation

7) Whichdonedofdthedfollowingdtypesdofdsecuritiesdhasdtendeddtodproducedthedlowestdrealdratedofdr
eturndfordthedperiodd1926dthroughd2017?
A) U.S.dTreasurydbills
B) Long-termdgovernmentdbonds
C) Small-companydstocks
D) Large-companydstocks
E) Long-termdcorporatedbonds

Answer:d AdDifficul
ty:d1dEasy
Section:d 10.4dAveragedStockdReturnsdanddRisk-
FreedReturnsdTopic:d Historicaldperformance
Bloom's:d Rememberd AACSB
:d ReflectivedThinking
Accessibility:d KeyboarddNavigation




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, 8) Ondaverage,dfordthedperiodd1926dthroughd2017:
A) thedrealdratedofdreturndondU.S.dTreasurydbillsdhasdbeendnegative.
B) small-companydstocksdhavedunderperformeddlarge-companydstocks.
C) long-termdgovernmentdbondsdhavedproduceddhigherdreturnsdthandlong-termdcorporatedbonds.
D) thedexcessdreturndondlong-termdcorporatedbondsdhasdexceededdthedexcessdreturndondlong-
termdgovernmentdbonds.
E) thedexcessdreturndondlarge-companydstocksdhasdexceededdthedexcessdreturndondsmall-
companydstocks.

Answer:d DdDifficul
ty:d1dEasy
Section:d 10.4dAveragedStockdReturnsdanddRisk-
FreedReturnsdTopic:d Historicaldperformance
Bloom's:d UnderstanddAACSB
:d ReflectivedThinking
Accessibility:d KeyboarddNavigation

9) Overdthedperioddofd1926dthroughd2017,dthedannualdratedofdreturndond
hasdbeendmoredvolatiledthandthedannualdratedofdreturndond .
A) large-companydstocks;dsmall-companydstocks
B) U.S.dTreasurydbills;dsmall-companydstocks
C) U.S.dTreasurydbills;dlong-termdgovernmentdbonds
D) long-termdcorporatedbonds;dsmall-companydstocks
E) large-companydstocks;dlong-termdcorporatedbonds

Answer:d EdDifficult
y:d1dEasy
Section:d 10.4dAveragedStockdReturnsdanddRisk-
FreedReturnsdTopic:d Historicaldperformance
Bloom's:d UnderstanddAACSB
:d ReflectivedThinking
Accessibility:d KeyboarddNavigation




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NodreproductiondorddistributiondwithoutdthedpriordwrittendconsentdofdMcGraw-HilldEducation.