The addition of a foreign security to the portfolio of the investor decreases the expected return for a given level of risk, then the security adds value to the portfolio
Indicate whether the statement is true or false.
Answer: FALSE
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A phrase which is analogous to the concept of global product platforms is:
A) "Pattern advertising." B) "Template advertising." C) "Cookie-cutter advertising." D) "Model advertising." E) "Stereotype advertising."
Why is the indirect format usually a better choice when sending negative employment messages?
A) Recipients tend to have an emotional stake in the message. B) There is less control over the message in other formats. C) Indirect formatted messages regarding employment are more sensitive than face to face conversations. D) Indirect formatted messages regarding employment are quicker to write. E) A direct format can be taken as a personal slight and a threat to the applicants future.
________ involves a retailer buying a product at a discounted promotional price, warehousing it, and after the promotion has expired, selling the inventory to other retailers at a price that is lower than the manufacturer's nondiscounted price but
high enough to turn a profit for the retailer. A) Hoarding B) Forward buying C) Diverting D) Discounting E) Rebating
When an enterprise increases its interest in an investment in equity securities accounted for by the fair value method, and changes to the equity method, what is the initial carrying value for purposes of subsequent application of the equity method?
a. Book value at the date of the change b. Original cost plus or minus the net market value change since acquisition c. Market value at the date of the change d. The amount that would be reflected in the investment account had the equity method been in use continually since the purchase of the securities