Care must be taken involving capital investment decisions, since normally a long-term commitment of funds is involved and operations could be affected for many years
Indicate whether the statement is true or false
True
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Which of the following is a Big Five personality factor that also corresponds to integrity test scores?
a. openness to experience b. emotional stability c. extraversion d. social dominance
The most widely recognized benefit of increased mobility is the productive use of travel time
Indicate whether the statement is true or false
During the distributed era, which role did the CIO have to take on?
A) organizational designer B) technology architect C) informed buyer D) All of the above
Which of the following statements is CORRECT?
A. Logically, it is easier to estimate the betas associated with capital budgeting projects than the betas associated with stocks, especially if the projects are closely associated with research and development activities. B. The beta of an "average stock," which is also "the market beta," can change over time, sometimes drastically. C. If a newly issued stock does not have a past history that can be used for calculating beta, then we should always estimate that its beta will turn out to be 1.0. This is especially true if the company finances with more debt than the average firm. D. During a period when a company is undergoing a change such as increasing its use of leverage or taking on riskier projects, the calculated historical beta may be drastically different from the beta that will exist in the future. E. If a company with a high beta merges with a low-beta company, the best estimate of the new merged company's beta is 1.0.