According to the CAPM, the required rate of a return on a stock can be estimated using only beta and the risk-free rate

Indicate whether the statement is true or false.


Answer: FALSE

Business

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You change the oil in your car yourself and dump the used oil down the sewer drain that ultimately flows into the local river. Oil manufacturers know this is not an isolated occurrence, so should they be concerned?

A. Yes, this is the type of situation that can get "Big Oil" a lot of bad press. B. No, the oil company will someday add a premium to the price to pay for oil cleanup in the environment. C. Yes, this is an issue of social responsibility because the polluted water affects others in the society at large. D. No, this is an issue solely between you and your neighbors. E. No, you paid for the oil and you can dispose of it as you like.

Business

What federal statute was enacted by the U.S. Congress to protect trade secrets?

A. the Sarbanes-Oxley Act B. the Lanham Act C. the Telecommunication Act D. the Economic Espionage Act

Business

One difficulty in waiting line analysis is that it is sometimes difficult to place a value on customer waiting time

Indicate whether the statement is true or false

Business

Asai uses a skill-based plan that establishes single flat rates for each skill level. Mark performs better than Steve, even though Steve has more seniority. Which of the following statements is most likely to be true in this scenario?

A. Mark will be paid more than Steve as his performance is better. B. Both Mark and Steve will be paid the same amount. C. Steve will be paid more than Mark as he has more seniority. D. Steve will be given more incentives than Mark.

Business