Which of the following illustrates the principle of diminishing marginal satisfaction?
A)
The second slice of pizza does not taste as good as the first slice.
B)
The more I have, the more I want.
C)
Higher financial returns require larger risks.
D)
Things were better in previous years.
A
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Which statement is true about content validity?
A. It is most suitable for tests that measure abstract qualities. B. It is useful for tests that measure intelligence and leadership quality. C. It indicates how free a measurement is from random errors. D. A test that scores high on content validity tends to score low on generalizability. E. It is usually measured on the basis of expert judgment.
Licensing is a contractual arrangement whereby one company makes an asset available to another company in exchange for some form of compensation
Indicate whether the statement is true or false
Why do businesses invest in short-term investments?
a. They are trying to gain control over the activities of other companies. b. They are investing excess cash to meet future business operation or investment needs. c. They are lending money to companies that cannot obtain bank loans. d. More than one of the above is correct.
Stock A's beta is 1.7 and Stock B's beta is 0.7. Which of the following statements must be true, assuming the CAPM is correct.
A. In equilibrium, the expected return on Stock B will be greater than that on Stock A. B. When held in isolation, Stock A has more risk than Stock B. C. Stock B would be a more desirable addition to a portfolio than A. D. In equilibrium, the expected return on Stock A will be greater than that on B. E. Stock A would be a more desirable addition to a portfolio then Stock B.