Which types of risk can not be avoided by carefully researching a company's business prospects and financial statements?
What will be an ideal response?
Answer: Market risk is the risk that market forces can affect the return of an individual investment. Event risk is the risk that an unforeseeable event may have an immediate, significant effect on an investment's returns. Tax risk is the possibility that tax laws affecting an investment could change. All of these risks are caused by factors external to the company, so they cannot be avoided by researching internal factors. Although not firm related, we could also mention purchasing power risk tied to unanticipated changes in inflation and interest rate risk which could affect stock values.
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When Bob, a wealthy real estate investor, saw an inner city kid wearing a heavy gold chain with a medallion around his neck, Bob wanted the same for himself. Bob's behavior is best explained by the ________
A) trickle-down effect B) trickle-up effect C) trickle-across effect D) meme theory
You should ________________ for any quoted material
a. italicize the text b. highlight the text c. cite the source d. skip a space