Which of the following statements about the bundling risks into portfolios is not correct?
A) Due to the randomness of business activity bundling risks into portfolios will be reducing risk.
B) Natural diversification occurs across uncorrelated risks that are bundled into a portfolio.
C) Bundling risk into a portfolio only reduces risk if uncorrelated and/or negatively correlated exposures are included.
D) The best reduction in risk is accomplished by including negatively correlated exposures into a portfolio.
C
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The violation of a statute that proximately causes an injury is termed as negligence per se
Indicate whether the statement is true or false
Travis observes that one of his employees always refuses to look him in the eye. He wonders if the employee lacks respect for him. Later, Travis sees that other employees also fail to look him in the eye. Travis decides that the employees are not disrespectful of him, but rather that he must be intimidating them. Travis makes this attribution based on
A. consensus. B. consistency. C. distinctiveness. D. stereotyping. E. selective perception.
What was the total cost if Intel replaced all chips?
a. $100 million b. $200 million c. $260 million d. $360 million
Spice Company issued $200,000 of 10 percent first mortgage bonds on January 1, 20X4, at 105. The bonds mature in 10 years and pay interest semiannually on January 1 and July 1. Pumpkin Corporation purchased $140,000 of Spice's bonds from the original purchaser on December 31, 20X8, for $125,000. Pumpkin owns 75 percent of Spice's voting common stock. Spice's partial bond amortization schedule is as follows:PMT # Interest$ PMTInterestExpenseAmort ofDiscount(Premium)Premium(Discount)BondsPayableCV
ofBonds 1/1/20X4 10,000.00 200,000.00 210,000.00 1 7/1/20X4 10,000.00 9,684.96 (315.04) 9,684.96 200,000.00 209,684.96 2 1/1/20X5 10,000.00 9,670.43 (329.57) 9,355.38 200,000.00 209,355.38 3 7/1/20X5 10,000.00 9,655.23 (344.77) 9,010.61 200,000.00 209,010.61 4 1/1/20X6 10,000.00 9,639.33 (360.67) 8,649.94 200,000.00 208,649.94 5 7/1/20X6 10,000.00 9,622.69 (377.31) 8,272.63 200,000.00 208,272.63 6 1/1/20X7 10,000.00 9,605.29 (394.71) 7,877.92 200,000.00 207,877.92 7 7/1/20X7 10,000.00 9,587.09 (412.91) 7,465.01 200,000.00 207,465.01 8 1/1/20X8 10,000.00 9,568.04 (431.96) 7,033.05 200,000.00 207,033.05 9 7/1/20X8 10,000.00 9,548.12 (451.88) 6,581.18 200,000.00 206,581.18 10 1/1/20X9 10,000.00 9,527.28 (472.72) 6,108.46 200,000.00 206,108.46 11 7/1/20X9 10,000.00 9,505.48 (494.52) 5,613.94 200,000.00 205,613.94 12 1/1/20X0 10,000.00 9,482.68 (517.32) 5,096.62 200,000.00 205,096.62 Based on the information given above, what amount of premium on bonds payable will be eliminated in the preparation of the December 31, 20X8 consolidated financial statements? A. $6,581 B. $4,276 C. $4,607 D. $6,108