Which of the following is true of risk aversion?
A) Greater risk aversion results in lower required returns for each level of risk.
B) A reduction in risk aversion causes the required return for each level of risk to increase.
C) In general, widely shared expectations of hard times ahead tend to cause investors to become less risk averse.
D) Changes in risk aversion, and therefore shifts in the SML, result from changing preferences of investors.
D
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A 2-for-1 stock split increases the par value per share
a. True b. False Indicate whether the statement is true or false
Griffin has fallen prey to hiring only Millennials in his new startup company. He feels that hiring someone from the Generation Xers will hold his company back regarding technology. What aspect of diversity does this represent?
a. Age b. Race and ethnicity c. Gender d. Ability
Job order costing would be appropriate for companies that produce custom homes and specialized equipment.
Answer the following statement true (T) or false (F)
Fester Company was making a product for $60 and selling it for $80. A competitor began selling the same product for $68. If Fester is to meet the competition's price, and maintain the same amount of profit per unit, what is target cost?
A) $40 B) $60 C) $48 D) $17 E) $63