The Securities Investor Protection Corporation insures individual investors against
A) the loss of up to $500,000 in securities or $100,000 in cash held by a broker.
B) market losses of $500,000 total or $100,000 per transaction.
C) losses of up to $100,000 incurred due to innocent online trading errors.
D) losses incurred up to $500,000 due to churning by a broker.
Answer: A
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The ______________________________ is an account used solely for payroll purposes. Funds are transferred into the account to cover payroll checks to be issued
Fill in the blank(s) with correct word
You are going to add one of the following three projects to your already well-diversified portfolio
PROJECT 1 PROJECT 2 Probability Return Standard Deviation Beta Probability Return Standard Deviation Beta 50% Chance 22% 12% 1.1 30% Chance 36% 19.5% 0.8 50% Chance -4% 40% Chance 10.5% 30% Chance -20% PROJECT 3 Probability Return Standard Deviation Beta 10% Chance 28% 12% 2.0 70% Chance 18% 20% Chance -8% Assume the risk-free rate of return is 2% and the market risk premium is 8%. If you are a risk averse investor, which project should you choose? A) Project 1 B) Project 2 C) Project 3 D) Either Project 2 or Project 3 because the higher expected return on project 3 offsets its higher risk
According to the efficient market theory,
A) Prices of actively traded stocks can be under- or over-valued in an efficient market. B) Prices of actively traded stocks can only be under-valued in an efficient market. C) Prices of actively traded stocks do not differ from their true values in an efficient market. D) Prices of actively traded stocks can only be over-valued in an efficient market.
Audit working papers would include all but:
A) accountant fees accrued for the year from all accounts. B) information disclosed during the audit. C) conclusions reached. D) records of accounting and auditing procedures and tests performed.