Which of the following statements does not apply to the market model?
a. It is a simpler approach than the standard version of the capital asset pricing model.
b. This approach is seldom used in accounting research.
c. In this model, the risk-free return is dropped from the equation.
d. Abnormal returns are captured in the error term of the model.
ANSWER: B
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Identify the true statement about ethics based on rights.
A. Application of theory to real-life situations is easy. B. There is no agreement on the scope and range of rights. C. There exists a well-defined line between rights and desires. D. Rights and duties can be easily defined.
Unincorporated entities are typically treated as flow-through entities for tax purposes.
Answer the following statement true (T) or false (F)
Which of the following statements is true of loss-leader pricing?
A. It is applicable to all products sold in a department store. B. It is legally accepted worldwide. C. It is closely related to high/low pricing. D. Its goal is to send consumers a message about the exclusivity of a product.
Internet sites that allow users to share photos, videos, and podcasts are called which of the following?
A. Video-sharing sites B. Photo-sharing sites C. Virtual sites D. Media-sharing sites E. Wikis