First, consider some basic background information concerning the differences between not-for-profit organizations and investor-owned firms. What is a corporate beta? How does it differ from a market beta?

Sandra McCloud, a finance major in her last term of college, is currently scheduling her placement interviews through the university's career resource center. Her list of companies is typical of most finance majors: several commercial banks, a few industrial firms, and one brokerage house. However, she noticed that a representative of a not-for-profit hospital is scheduling interviews next week, and the position--that of financial analyst--appears to be exactly what Sandra has in mind. Sandra wants to sign up for an interview, but she is concerned that she knows nothing about not-for-profit organizations and how they differ from the investor-owned firms that she has learned about in her finance classes. In spite of her worries, Sandra scheduled an appointment with the hospital representative, and she now wants to learn more about not-for-profit businesses before the interview.
To begin the learning process, Sandra drew up the following set of questions. See if you can help her answer them.


The corporate beta is a quantitative measure of corporate risk; it is the slope of the corporate characteristic line, which is the regression line that results when the project's returns are plotted on the y axis and the returns on the firm's total operations are plotted on the x axis. By definition, a company’s average corporate beta is 1.0.For a firm with many projects, a particular project’s corporate beta indicates the relativeamount of risk that the project contributes to corporate risk. For example, if a project’s corporate beta is 2.0,then it contributes twice as much risk to the company as a project with a corporate beta of 1.0. A project's market beta is a similar quantitative measure of a project's market risk, but it measures the amount of risk that the project contributes to the market portfolio.

Health Professions

You might also like to view...

SCENARIOUse this scenario to answer the following question(s).A 76-year-old man is complaining of chest pain and dizziness after falling off his porch. He has a rapid and weak pulse, and his skin is cool, pale, and sweaty. His blood pressure is 96/64, and he says he feels as though he might pass out.In your opinion, your geriatric patient's fall was due to syncope rather than any underlying condition. Which of the following would be the correct treatment?

A. Check him for injuries and advise him to see a health care professional as soon as possible. B. Keep the patient cool and ask him to eat something, in case he is having a diabetic emergency. C. Have him sit quietly on the stretcher and give him a glass of tepid water to replace fluids. D. Tell him to sit on the porch with his feet on the steps, then lean over and put his head between his knees.

Health Professions

To change the level of an E&M code based on time, which of the following conditions must be met?

A) Face-to-face time must be documented as at least 25 minutes. B) Counseling time must be documented as equal to face-to-face time. C) Face-to-face time must be documented as at least 40 minutes. D) Counseling time must be documented as greater than half of face-to-face time.

Health Professions

The formed elements of blood are the red and white blood cells and platelets.

Answer the following statement true (T) or false (F)

Health Professions

When a patient becomes dizzy when attempting to stand, due to changes in blood vessels, what are the most appropriate instructions to give?

a. Get up slowly. b. Stay in bed and try again later. c. Stay in bed until instructed otherwise. d. Call for emergency personnel.

Health Professions