Which of the following are micro economic variables that help define and explain the discipline of finance?
a)risk &return
b)capital structure
c) inflation
d)All of the above.
D) all of the above
Returns are the gains or losses from a security in a particular period and are usually quoted as a percentage. ... The risk/return tradeoff is the balance between the desire for the lowest possible risk and the highest possible return. Investment risks can be divided into two categories: systematic and unsystematic.
The capital structure is how a firm finances its overall operations and growth by using different sources of funds. Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings.
CPI is the most frequently used statistic for identifying inflation or deflation. ... Rising CPI-U figures means that the prices of goods/services within the urban population are becoming more expensive and can be a sign of rising inflation.
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