According to the Capital Asset Pricing Model, investors are primarily concerned with portfolio risk, not the risks of individual stocks held in isolation. Thus, the relevant risk of a stock is the stock's contribution to the riskiness of a well-diversified portfolio.

Answer the following statement true (T) or false (F)


True

Business

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The example of Rubbermaid in Wooster, Ohio shows us that

a. international trade is always favorable for the U.S. economy. b. tariffs can reduce firm mobility, thus keeping jobs in the U.S. c. although international trade generally benefits all, the movement of firms can have a temporary negative impact on workers in a region. d. prices always rise to account for price increases in raw materials.

Business

The Work in Process Inventory account of a manufacturing company has a $3,200 debit balance. The company applies overhead using direct labor cost. The cost sheet of the only job still in process shows direct material cost of $1,400 and direct labor cost of $800. Therefore, the amount of applied overhead is:

A. $2,200. B. $2,400. C. $1,800. D. $1,000. E. $800.

Business

Carmen knows that she will not have bonus dollars to reward her high-performing management team this year due to a shortfall in company profits. Furthermore, a companywide hiring and promotion freeze will prohibit her from hiring entry-level workers to allow existing staff to be promoted to higher levels. In response, she has arranged for her management team to attend the annual corporate planning meeting, affording them a unique opportunity to interact with and gain recognition by company executives. She has instituted this nonmonetary reward because

A. according to McClelland, managers need no motivation. B. she wanted her staff to perceive that good performance will be rewarded with a bonus, for example, instrumentality. C. according to Herzberg, motivated workers do not need intrinsic rewards, for example, motivators. D. according to Herzberg, motivated workers do not need extrinsic rewards, for example, hygiene factors. E. nonmonetary rewards can motivate when pay and promotions are scarce.

Business

Which of the following characteristics is unique to pricing more so than other variables of the marketing mix?

A. Challenging B. Truthfulness C. Flexibility D. Consistency E. Clarity

Business