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NEW QUESTION: 1
According to the fundamental view of risk, an individual's required rate of return is determined at least in part by all of the following factors EXCEPT:
A. beta risk.
B. business risk.
C. relative ease or tightness in the capital markets.
D. the preference consumers have for current consumption.
Beta risk, or the riskiness of the stock as viewed by a well-diversified stockholder, is used in the systematic view of risk. The fundamental view of risk views required return as (1 + real rate)(1 + expected inflation rate)(1 + risk premium) - 1. The risk premium is a function of total risk. (Total risk = business risk + financial risk + liquidity risk + exchange rate risk + country risk.) The preference consumers have for current consumption is a component of the real risk-free rate. The relative ease or tightness in the capital markets is a component of the inflation rate. Both the real-risk free rate and the inflation rate are components of the total return. Under the fundamental view of risk, business risk is part of the risk premium.
NEW QUESTION: 2
In preparing a presentation to a customer who is primarily focused on the total cost of a project as well as on going operational costs, what would you want to include your presentation?
A. HPE services
B. managed cloud options
C. lowered TCO or reduced OPEX
D. public cloud options
NEW QUESTION: 3
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