For the firm offer rule to apply, who must be a merchant?
A) The offeror B) The offeree
C) Both the offeror and the offeree D) Neither the offeror nor the offeree
A
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When one party to a transaction knows more than another, the situation is one of
A. rational expectations. B. imperfect credibility. C. opportunity cost. D. asymmetric information.
The GAAP Oval best represents the
a. fact that only one true earnings number exists. b. flexibility managers have within GAAP to report one earnings number from among many possibilities. c. philosophy that earnings management within limits is ethical. d. fact that GAAP is not subject to interpretation.
Stocks A and B each have an expected return of 15%, a standard deviation of 20%, and a beta of 1.2. The returns on the two stocks have a correlation coefficient of +0.6. Your portfolio consists of 50% A and 50% B. Which of the following statements is CORRECT?
A. The portfolio's expected return is 15%. B. The portfolio's standard deviation is greater than 20%. C. The portfolio's beta is greater than 1.2. D. The portfolio's standard deviation is 20%. E. The portfolio's beta is less than 1.2.
An important advantage of a corporate form of ownership is the reduction of stockholder liability
Indicate whether the statement is true or false