An investor is faced with the decision of whether to invest in a stock with an expected return of 14% or a stock in the same industry with an expected 20% return. Which of the following seems most likely?
A) the 20% stock is a better investment.
B) Both stocks are priced correctly given their perceived risk.
C) the 14% stock is overpriced.
D) Both stocks will have approximately the same return.
Answer: B) Both stocks are priced correctly given their perceived risk.
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Which of the following is considered research and development costs?
a. Planned search or critical investigation aimed at discovery of new knowledge. b. Translation of research findings or other knowledge into a plan or design for a new product or process. c. Neither a nor b. d. Both a and b.
Which of the following is a reason why nations set up import controls?
A) to prevent the imposition of antidumping duties B) to prevent foreign companies from destroying home industries C) to reduce the flow of foreign currency coming into the home country D) to prevent unfriendly nations from obtaining sensitive goods