If the equation E(ri) = rf + (rf + [E(rm) - rf] × ?i) is the linear equation for the Security Market Line, what portion represents the market risk premium for a stock that does not have a beta of 1.0?
A) ?i
B) [E(rm) - rf]
C) rf
D) ?i ? [E(rm) - rf]
Answer: B
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The balanced scorecard ______.
a. is focused only on financial measures b. is useful only for manufacturing organizations c. is used by profit, nonprofit, and governmental organizations worldwide d. was very popular in the 1940s
Which of the following hypotheses/theories suggests that investors regard a change in dividend payments as a signal that the firm's management expects future earnings to also change?
A. Information content hypothesis B. Clientele effect theory C. Constant payout ratio hypothesis D. Dividend modification hypothesis E. Projected earnings hypothesis
The bullwhip effect moves a supply chain away from the efficient frontier by increasing cost and decreasing responsiveness
Indicate whether the statement is true or false.
The implementation of JIT moves beyond an adoption of a tool set. It is a organization wide philosophical change. One method of managing change is the Kotter's 8 Steps. Which of the following is not included in Kotter's 8 Steps as a step?
a. Create a sense of urgency b. Communicate for understanding and buy-in c. Put together the guiding team d. Produce long-term wins