In an efficient market the correlation coefficient between stock returns for two nonoverlapping time periods should be
A. positive and large.
B. positive and small.
C. zero.
D. negative and small.
E. negative and large.
C. zero.
In an efficient market there should be no serial correlation between returns from nonoverlapping periods.
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An auditor who accepts an audit engagement and does not possess expertise with respect to the business entity's industry, should:
A. refer a substantial portion of the audit to another CPA, who will act as the principal auditor. B. first inform management that an unqualified opinion cannot be issued. C. engage financial experts familiar with the nature of the business entity. D. obtain a knowledge of matters that relate to the nature of the entity's business.
________ is a mistake made by both parties concerning an object that is important to the subject matter of a contract
A) Mutual mistake of value B) Mutual mistake of material fact C) Elementary unilateral mistake D) Fraud by concealment
If annual demand increases by 100%, the average inventory held in a system governed by the EOQ model is:
A) increased 100%. B) decreased by 100%. C) decreased by 50%. D) increased by 40%.
Ready Repair Service enters into a contract to fix washers and dryers in Scrub n' Dry Company's coin-operated laundries. If Ready Repair breaches the contract, Scrub n' Dry can A) ?do nothing but make a deal with a different service provider
B) do nothing but temporarily suspend operations and wait. C) file a criminal complaint against Ready Repair. D) sue Ready Repair for damages.