Choose the correct statement Select one: A. A flight to quality during the reccessions increases the...

Choose the correct statement

Select one:

A. A flight to quality during the reccessions increases the risk premium.

B. Legal tender is the provision that shields the owner of a corporation from loosing more than their investment.

C. A corporate's market capitalization is the total value of its common stocks.

D. When the yield curve is strictly downward sloping, term spread must be positive.

Expert Solution

Answer: A) A flight to quality during recessions increases the risk premium.

The above statement is correct.

Justification:

during volatile occasions, investors' compelling hazard avoidance increments. Accordingly, there is a flight to quality, as in the risk premium financial specialists require per unit of unpredictability increases.

Rahul Sunny answered 2 years ago

Which of the following statement is correct? Select one: a. Cultural risk is the risk that...

Which of the following statement is correct? Select one: a. Cultural risk is the risk that foreigners doing business in another country will fail to adapt to cultural differences, and this failure will affect the MNC’s success. b. All the answers are incorrect. c. The firm using the hedging instruments such as a forward, futures, or swap contract magnifies the foreign exchange risk. d. Mexican tourists tend to come to the United States in smaller numbers when the dollar is...

Which one is the correct statement? Choose all applied. a. There are three types of tests....

Which one is the correct statement? Choose all applied. a. There are three types of tests. Upper tailed test, Lower tailed test and Two tailed test b. If p-value of a test is larger than level of significance (alpha), reject the null statement. c. In hypothesis statement, there are only two statements: One is null statement and the other is alternative statement. d. If level of significance is 0.05, then confidence level is 0.95. According to the Centers for Disease...

Which of the following statement is correct? Select one: a. Cat bonds are also known as...

Which of the following statement is correct? Select one: a. Cat bonds are also known as "catastrophe-linked bonds." b. A typical HO-3 type of homeowners’ insurance policy never provides coverage for “other structures” of a house based on the percentage of the dwelling such as it is stated as “10 percent of dwelling coverage.” c. All the answers are incorrect. d. Since the losses tend not to be correlated across policyholders, homeowners’ insurance policies commonly include coverage for earthquake and...

Choose the correct frequency for the following statements. Statement A...

Choose the correct frequency for the following statements. Statement A sample of a mouse population has a frequency of 0.18 for the dominant allele for black hair coat (B). A sample of a mouse population has a frequency of 0.32 for heterozygote coat colour individuals (Bb). A sample of a mouse population has a frequency of 0.48 for white coat colour individuals....

Choose the correct statement. A.We measure the change in production by comparing nominal GDP in one...

Choose the correct statement. A.We measure the change in production by comparing nominal GDP in one year with real GDP in the previous year. B.Nominal GDP is just a more precise name for GDP. C.When nominal GDP increases comma real GDP decreases. D.Nominal GDP is just a more precise name for real GDP.

Which statement is correct? Select one: a. When MR = P, the average cost curve is...

Which statement is correct? Select one: a. When MR = P, the average cost curve is at its minimum point. b. When MR = MC, the average cost curve is at its minimum point. c. When the marginal cost curve is below the average cost curve, the average cost curve must be rising. d. When the marginal cost curve is above the average cost curve, the average cost curve must be rising.

Which of the following statement is correct? Select one: a. Firms in labor-intensive industries with enormous...

Which of the following statement is correct? Select one: a. Firms in labor-intensive industries with enormous production economies of scale may be forced to sell overseas in order to spread their overhead over a larger quantity of sales. b. The unit cost reduction through high volume production is called the economies of scale. c. All the answers are incorrect. d. The multinational financial system enables companies to avoid exchange rate risk. e. The distinguishing characteristic of the multinational corporation (MNC)...

Which of the following statement is correct? Select one: a) Adding less water than required in...

Which of the following statement is correct? Select one: a) Adding less water than required in concrete results in higher workability b) Adding more water than required in concrete results in higher compressive strength c) Adding more water than required in concrete results in more voids and higher porosity

Which statement below is correct when the exchange rate increases for U.S. dollars per one Euro?...

Which statement below is correct when the exchange rate increases for U.S. dollars per one Euro? The indirect exchange rate for Euros has increased. A company that has a receivable denominated in Euros experienced a loss. The U.S. dollar has experienced a weakening relative to the Euro. Imports from Europe to the U.S. are less expensive.

47. Which of the following statements are correct? Select which option is correct. Select one or...

47. Which of the following statements are correct? Select which option is correct. Select one or more: The level of professional skepticism can be reduced where the auditor has past experience with the entity indicating the honesty and integrity of management. The level of professional skepticism needs to be maintained throughout the whole engagement. Professional skepticism implies an expectation of fraud or error, so is a biased viewpoint. Professional skepticism is not important in considering management's explanations for unusual trends...

Question