What is the beta of a security?
What will be an ideal response?
As indicated in Question 7, the beta of the security is the covariance of its return with the return on the market portfolio divided by the variance of the market portfolio return. This beta can be estimated from a regression of excess returns on the security in question onto excess returns on the market portfolio (proxied by the world market portfolio return, for example). Sometimes, industry portfolios are used to reduce the sampling error in estimating the betas.
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Firms keep supplies of inventory for which of the following reasons?
A. To maintain dependence of operations B. To provide a feeling of security for the workforce C. To hedge against wage increases D. To meet variation in product demand E. In case the supplier changes the design
______ is the process of estimating the demand for a firm’s products in the near future.
A. Demand forecasting B. Demand management C. Demand planning D. Demand assessment
Which of the following measures of performance encourages continued expansion by an investment center so long as it is able to earn a return in excess of the minimum required return on average operating assets?
A. the contribution approach B. residual income C. transfer pricing D. return on investment
According to the Leadership Grid®, __________ management means the absence of a management philosophy, where managers exert little effort toward interpersonal relationships or work accomplishment.
A. solitary B. middle-of-the-road C. low-road D. authority-compliance E. impoverished