Stocks and bonds differ in that stocks pay fixed dividends, wheras bonds pay a variable amount of interest at regular intervals. bonds pay fixed dividends out of revenues, whereas stocks pay a variable amount of interest at regular intervals. stocks pay dividends out of profits, whereas bonds pay a predetermined amount of interest at regular intervals. bonds pay dividends out of profits, whereas stocks pay a predetermined amount of interest at regular intervals. b. stocks are considered less risky than bonds, because companies need to have earnings to stay in business. more risky than bonds, because stock prices and profits are highly variable. almost risk-free, since companies need to have earnings to stay in business. less risky than bonds, because stock prices and profits are not highly variable. c. which investment commonly goes by the name "fixed income"? stocks mutual funds stocks and bonds bonds

Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes

An employer who is considering hiring eva has asked donna, eva’s former supervisor, for a report on eva. in truth, eva’s work for donna has been only average. however, eva is donna’s friend, and donna knows that eva probably will not get the job if she says anything negative about eva, and donna knows that eva desperately needs the job. further, donna knows that if the situation were reversed, she would not want eva to mention her deficiencies. nevertheless, it has been donna’s policy to reveal the deficiencies of employees when she has been asked for references by employers, and she knows that some of eva’s faults may be bothersome to this particular employer. finally, this employer has leveled with donna in the past when donna has asked for a report on people who have worked for him. should donna reveal deficiencies in eva’s past performance? (remember to use one of the three moral theories acceptable for this test to solve this dilemma. any discussion of any personal opinion, religious perspective, or theory other than the moral theories acceptable for this test will result in a score of "0" for this question.)

Calculate the required rate of return for climax inc., assuming that (1) investors expect a 4.0% rate of inflation in the future, (2) the real risk-free rate is 3.0%, (3) the market risk premium is 5.0%, (4) the firm has a beta of 2.30, and (5) its realized rate of return has averaged 15.0% over the last 5 years. do not round your intermediate calculations.