True or False A portfolio manager was analyzing the price-earnings ratio for this year's performance. His boss said that the average price-earnings ratio was 20 for the many stocks, which his firm had traded, but he felt that figure was too high. The portfolio manager randomly selected a sample of 50 P/E ratios and found a mean of 18.17 and standard deviation of 4.60 . Assume that the population
is normally distributed and test at the 0.01 level of significance. The decision is: Because the test statistic t = 2.81 is greater than 2.33, reject H0 . At the 0.01 level, the sample data suggest that the average P/E ratio for the stocks is less than 20.
Indicate whether the statement is true or false
F
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Once managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business attractiveness of the proposal in the ________ stage of the new-product development process
A) business feasibility B) feasibility study C) business analysis D) product acceptance E) technical development
Two commonly used measures to calculate the capability of a process are ______.
A. the process capability index and process centering capability index B. the process centering capability index and the control index C. the control index and the range specification D. the range specification and the process capability index
Susan filed a Division 2 proposal but it was rejected by the creditors. As a result
A) Susan is now automatically bankrupt B) the trustee in bankruptcy must take control of her assets C) Susan can amend the terms of the proposal and resubmit it D) Susan can decide to voluntarily go bankrupt E) both C and D
O'Brien Inc. has the following data: rRF = 5.00%; RPM = 6.00%; and b = 0.70. What is the firm's cost of equity from retained earnings based on the CAPM?
A. 6.90% B. 9.02% C. 10.58% D. 11.41% E. 9.20%