1. The belief that investors require a higher return to entice them into holding long-term securiti


1. The permission that investors exact a taller restore to seduce them into encroachment long-term securities is the viewpoint of the A. the expectations hypothesis B. segmentation theory C. the liguidity reward theory D. communicate reputation crunch theory 2. The communicate allocates cardinal to companies agricultural on A. risk B. efficiency C. expected restores D. all of the above 3. As the concern trounce growths, the confer-upon appraise of an quantity to be current at the end of a agricultural period A. growths B. decreases C. scum the corresponding D. not suited knowledge to tell 4. A undestroyed financing guile involves A. stupid dependence on default B. stupid dependence on equity C. tall quantity of financial leverage D. tall quantity of thoroughly leverage 5. At age 5, how considerconducive would you possess to husband per month to possess $1 favorite in your statement at age 65, if your cannonade reate was 10% per year? Assume no taxes and compounding on a monthly basis A. $213.30 B. $21.23 C. $274.60 D. can't be manufactured after a while these assumptions 6. the size to which register financing may be use depends on A. communicateability of pledged goods B. charge retention of goods C. perishability of goods D. all of the above 7. After 20 years, 100 shares of store originally purchased for $1000 was sold for $5000. What was the let-go on the cannonade? Choose the closest vindication. A. 19% B. 5% C. 12.7% D. 8% 8. Unders typical stipulations (70% chance), Financing Guile A accomplish effect $24,000 taller than Guile B. Under fast capital stipulations (30% chance), Guile A accomplish effect $40,000 hither then Guile B. What is the expected appraise of restore for Guile A ove Guile B A. $28,800 B. $4,000 C. $4,800 D. 35,2000 9. When Patricia sells her General Motors low store at the corresponding term that Brian purchases the corresponding quantity of General Motor's store, General Motors receives: A. the "spread" betwixt the Bid and Ask of the performance. B. the dollar quantity of the performance, hither brokerage fees. C. singly the par appraise of the low store D. nothing 10. Corporations that do not offspring financial securities such as store or default obligations: A. accomplish not be conducive to growth sales B. cannot be profitable C. genetrounce suited funds to fullfill their needs D. do not countenance envelop taxation of their profits