Paul McLaren holds the following portfolio:
Stock
Investment
Beta
A
$150,000
1.40
B
50,000
0.80
C
100,000
1.00
D
75,000
1.20
Total
$375,000
Paul plans to sell Stock A and replace it with Stock E, which has a beta of 0.75. By how much will the portfolio beta change?
A. ?0.190
B. ?0.211
C. ?0.234
D. ?0.260
E. ?0.286
Answer: D
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A donor made an unconditional pledge in 2016 of $ 50,000 to a private not-for-profit organization with the intent to pay the cash in 2017 for unrestricted use in 2017. The organization should:
A. record the pledge as unrestricted revenue in 2016. B. record the pledge as temporarily restricted revenue in 2016 and reclassify it to unrestricted in 2017. C. record the pledge receivable and deferred revenue in 2016. D. record the pledge as temporarily restricted revenue in 2016 and reclassify it to unrestricted in 2017, but only in an amount equivalent to the amount that is spent in 2017.
In business, horizontal communication is communication with people who are at the same level as you
Indicate whether the statement is true or false
If a buyer does not take advantage of a supplier's credit terms of 2/10, n/30, and instead pays the invoice in full at the end of 30 days, by not taking the discount the buyer loses the equivalent of 36.5% annual interest on the amount of the purchase.
Answer the following statement true (T) or false (F)