If the Swiss demand for dollars is inelastic, then an appreciation of the dollar against the franc will lead to a greater quantity of francs being supplied to the foreign exchange market to obtain dollars.
a. True
b. False
b. False
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Defining an organization’s objectives and aligning goals with organizational objectives are two stages of management by objectives.
a. True b. False
Absent provisions in the contract, which of the following types of damage can be awarded to an injured party under a breach of contract?
a. General damages only b. General and incidental damages only c. General, incidental, and special damages only d. General, incidental, special and punitive damages
Under conditions of limited resources, when a company is comparing several investments with different amounts of initial cost, the decision should be made on the basis of the ________
A) highest total cash inflows B) shortest payback period C) highest profitability index D) highest NPV
Your portfolio consists of $50,000 invested in Stock X and $50,000 invested in Stock Y. Both stocks have an expected return of 15%, betas of 1.6, and standard deviations of 30%. The returns of the two stocks are independent, so the correlation coefficient between them, rXY, is zero. Which of the following statements best describes the characteristics of your 2-stock portfolio?
A. Your portfolio has a standard deviation of 30%, and its expected return is 15%. B. Your portfolio has a standard deviation less than 30%, and its beta is greater than 1.6. C. Your portfolio has a beta equal to 1.6, and its expected return is 15%. D. Your portfolio has a beta greater than 1.6, and its expected return is greater than 15%. E. Your portfolio has a standard deviation greater than 30% and a beta equal to 1.6.