The ________ is the intercept on the Security Market Line
A) prime rate
B) risk-free rate
C) market rate of return
D) beta
Answer: B
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Which one of the following statements is an advantage of the group and composite methods of depreciation?
A) Faulty estimates are concealed for long periods. B) Gains are deferred beyond the period in which they actually occurred. C) Record keeping is simplified. D) Losses are not recognized in the period in which they occur.
With experimental designs, it is possible to control for some of the extraneous variables
Indicate whether the statement is true or false
A company's beginning Work in Process inventory consisted of 20,000 units that were 80% complete with respect to direct labor. A total of 90,000 were finished during the period and 25,000 remaining in Work in Process inventory were 40% complete with respect to direct labor at the end of the period. Using the weighted-average method, the equivalent units of production with regard to direct labor were:
A. 76,000. B. 90,000. C. 116,000. D. 46,000. E. 100,000.
What is the primary argument for not giving depositors greater incentive to monitor financial institutions?
A) Experts do not believe that depositors are capable of monitoring banks and imposing discipline on them. B) Banks could be subject to more frequent runs by nervous depositors. C) Both A and B are correct. D) Neither A nor B is correct.