The beta of a portfolio ________.
A) is the sum of the betas of all assets in the portfolio
B) is the product of the betas of the individual assets in the portfolio
C) is the median of the range of beta of the portfolio
D) is the weighted average of the betas of the individual assets in the portfolio
D) is the weighted average of the betas of the individual assets in the portfolio
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Which statement is not true about cluster analysis?
A) Cluster analysis is a technique for analyzing data when the criterion or dependent variable is categorical and the independent variables are interval in nature. B) Cluster analysis is also called classification analysis or numerical taxonomy. C) Groups or clusters are suggested by the data, not defined a priori. D) Objects in each cluster tend to be similar to each other and dissimilar to objects in the other clusters.
Trust Engineering Company is considering the purchase of a new machine to replace an existing one. The old machine was purchased 5 years ago at a cost of $20,000, and it is being depreciated on a straight line basis to a zero salvage value over a 10-year life. The current market value of the old machine is $14,000. The new machine, which costs $30,000, falls into the MACRS 5-year class and has an estimated life of 5 years. The change in depreciation expense that results from accepting the project and will be considered in the capital budgeting analysis is _____. The MACRS rates for 5-year class are Year 1-20%, Year 2-32%, Year 3-19%, Year4-12%, Year 5-11%, Year 6-6%.
A. $10,500 B. $23,400 C. $44,000 D. $20,000 E. $17,000
A holder takes an instrument for value if he or she inherits an instrument
Indicate whether the statement is true or false
The point at which the scale economy curve and the learning curve intersect is called the capacity optimum.
Answer the following statement true (T) or false (F)