Run the investing gates

Exercise and reference answers

Questions

1. Correct

   Firm risk

   Choices

   1. Firm risk
   2. Market risk
   3. Neither

2. Correct

   Market risk

   Choices

   1. Firm risk
   2. Market risk
   3. Neither

3. Correct

   Dividend

   Choices

   1. Dividend
   2. Capital gain
   3. Neither

4. Correct

   Capital gain

   Choices

   1. Dividend
   2. Capital gain
   3. Neither

5. Correct

   Risk free

   Choices

   1. Risk free
   2. Risk premium
   3. Neither

6. Correct

   Risk premium

   Choices

   1. Risk free
   2. Risk premium
   3. Neither

Instructions

Pick the risk type, then the yield, then the rate.

Explanation