Which of the following statements about the Security Market Line are correct?
I. The intercept point is the risk-free rate of return.
II. The slope of the line is beta.
III. An investor should accept any return located above the SML line.
IV. A beta of 1.0 indicates the risk-free rate of return.
A) I and II only
B) III and IV only
C) II, III and IV only
D) I,II and III only
Answer: D
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Chile decided to become only an associate member of Mercosur and hence participates in the free trade area aspect of Mercosur as well as the customs union
Indicate whether the statement is true or false
Jack signed up to run a marathon even though he had never run such a distance in his life. For of the next 6 months he methodically applied himself to training. He woke up at 5:00 a.m. every morning and ran at least 6 miles. On the weekends, he went on longer runs of anywhere between 10 and 18 miles. He also changed his diet to include healthier options. Race day came and he completed the marathon despite record heat and strong head winds. Jack’s accomplishment best illustrates which organizational behavior concept?
A. motivation B. communication C. leadership D. strategic management
For each item below, indicate whether a debit or a credit applies
a. Decrease in Accounts Payable b. Decrease in Land c. Increase in Retained Earnings d. Increase in Unearned Revenue e. Decrease in Interest Payable f. Increase in Prepaid Insurance g. Increase in Wages Expense h. Decrease in Art Supplies i. Increase in Advertising Fees Earned
Which of the following is true of the Sarbanes-Oxley Act of 2002?
A. The act requires at least 30 percent of the businesses in the United States to be formed as S corporations. B. The act requires a limited liability company to have a committee that consists of inside directors to oversee the firm's audits. C. The act requires a limited liability company to be taxed like a proprietorship. D. The act requires an S corporation to have more than 100 stockholders (members) and more than one type of stock. E. The act requires a publicly-traded corporation to hire an external auditing firm that renders an unbiased opinion concerning the firm's financial statements.