The critical variable in the determination of the success of the active portfolio is
A. alpha/systematic risk.
B. alpha/nonsystematic risk.
C. gamma/systematic risk.
D. gamma/nonsystematic risk.
B. alpha/nonsystematic risk.
A portfolio with a positive alpha is outperforming the market. If this portfolio also has a low degree of nonsystematic risk, the portfolio is adequately diversified.
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The Extra Surplus Company's Balance Sheet for December 31, 2017 and the Income Statement for 2018 are shown below.Extra Surplus Company Balance Sheet December 31, 2017 Assets Cash$10,000 Accounts Receivable 5,000 Inventory 12,000 Property and Equipment, Net 20,000 $47,000 Liabilities and Stockholders' Equity Accounts Payable$10,000 Notes Payable, Long-Term 5,000 Common Stock 20,000 Retained Earnings 12,000 $47,000 Extra Surplus CompanyIncome StatementFor the Year Ended December 31, 2018Sales$13,000 Cost of Goods Sold 3,000 Salaries and Wage Expense 3,000 Interest Expense 1,000 Other Expenses 500 Net Income$5,500 Additional data:• Sales were $13,000; $8,000 in cash was received from
customers.• Bought new land for cash, $10,000.• Sold other land for its book value of $5,000.• Paid $1,000 principal on the long-term note payable and $1,000 in interest.• Issued new shares of stock for $10,000 cash.• Cash dividends of $1,000 were declared and paid to stockholders.• Paid $5,500 on accounts payable.• No inventory purchases were made; other expenses were incurred on account.• All wages were paid in cash.• Other expenses were on account.Required:Part a. Prepare a balance sheet at December 31, 2018.Part b. Prepare the statement of cash flows using the direct method. What will be an ideal response?
In the context of the levels of planning, the formal planning model is ________, with top-level strategies flowing down through the levels of the organization into more specific goals and plans.
A. hierarchical B. tactical C. uncertain D. concentrated E. horizontal
Jeremy Ortiz is an employee of Insulor Flooring, where his job responsibilities include selling service contracts to customers. Jeremy is single with two withholding allowances. He receives an annual salary of $36,000 and receives a 3 percent commission on all sales. During the semimonthly pay period ending September 29, Jeremy sold $12,500 of service contracts. Complete the payroll register for
the September 29 pay period. What will be an ideal response?
Answer the following statements true (T) or false (F)
1. Preferred stock is considered a voting "class" of stock. 2. The only way that a stockholder can help manage a corporation is through their right to vote. 3. If a stock has a stated value of $1, this means that the stock sells for $1 per share. 4. Many companies raise capital by issuing stock directly to stockholders or by using an underwriter. 5. The issue price of the stock usually is equal to the par value of the stock.