For market skimming to be successful, the costs of producing a smaller volume cannot be so high that they cancel the advantage of charging more
Indicate whether the statement is true or false
TRUE
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Indicate whether the statement is true or false
Suppose x is an exponentially distributed random variable with a mean of 10 . Use Excel to calculate the following:
a. P(x ? 15) b. P(8 ? x ? 12) c. P(x ? 8)
Identify the list of accounts below that would normally all have a credit balance.
A. Salaries Payable, Employee Income Tax Payable, Owner's Capital. B. Salaries Payable, Prepaid Insurance, Medicare Tax Payable. C. Employee Income Tax Payable, Social Security Tax Payable, Salaries Expense. D. Wages Expense, Salaries Payable, Equipment.
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 18% and a standard deviation of return of 20%. Stock B has an expected return of 14% and a standard deviation of return of 5%. The correlation coefficient between the returns of A and B is .50. The risk-free rate of return is 10%. The proportion of the optimal risky portfolio that should be invested in stock A is _________.
A. 0% B. 40% C. 60% D. 100%