Eco 561 Week 5 Quiz Free
ECO 561 Week 5 Quiz
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** Important ** … ECO 561 Week 5 “FREE” Quiz w/ answers
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1. The Classical Theory of Asset Prices assumes which of the following ideas?
Hint : Investors purchase assets based on a rational expectation of a stream of future income. A. The interest rate to use is the nominal rate, assets are the discounted sum of their future values, and expected income is the best information available. B. Actual past income is the best information available, assets are the discounted sum of their future values, and the interest rate is the safe interest rate plus a risk premium.
[ C. The value of an asset is the discounted present value of expected cash flows, expected income is the best information available, and the interest rate is the safe interest rate plus a risk premium.] D. The interest rate to use is the real rate, expected income is the best information available, and the assets are the discounted sum of their future values.
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Investors purchase assets based on a rational expectation of a stream of future income. The interest rate is based on what investors would receive if they placed their capital in a risk-free investment, such as a government bond or certificate of deposit that is guaranteed by a government agency. However, each investor has a certain risk tolerance and may elect to incur some risk; this is known as a risk premium.
2. Economists use two principle interest rates: nominal and real. The purpose of this distinction is to
Hint : In economics, nominal variables are often adjusted for changes in the
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** Important ** … ECO 561 Week 5 “FREE” Quiz w/ answers
I see lots of views , but no one comments ….. : (
PLEASE COMMENT(add notes) at this site or .. go to ROGUEPHOENIX.39 fAcEb**K , and LET ME KNOW THAT THIS IS HELPING you . If no comments are made …. This will be my last post .
-------------------------------------------------
Good luck ….
1. The Classical Theory of Asset Prices assumes which of the following ideas?
Hint : Investors purchase assets based on a rational expectation of a stream of future income. A. The interest rate to use is the nominal rate, assets are the discounted sum of their future values, and expected income is the best information available. B. Actual past income is the best information available, assets are the discounted sum of their future values, and the interest rate is the safe interest rate plus a risk premium.
[ C. The value of an asset is the discounted present value of expected cash flows, expected income is the best information available, and the interest rate is the safe interest rate plus a risk premium.] D. The interest rate to use is the real rate, expected income is the best information available, and the assets are the discounted sum of their future values.
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Investors purchase assets based on a rational expectation of a stream of future income. The interest rate is based on what investors would receive if they placed their capital in a risk-free investment, such as a government bond or certificate of deposit that is guaranteed by a government agency. However, each investor has a certain risk tolerance and may elect to incur some risk; this is known as a risk premium.
2. Economists use two principle interest rates: nominal and real. The purpose of this distinction is to
Hint : In economics, nominal variables are often adjusted for changes in the