A well-diversified portfolio includes investments in 50 securities. The portfolio's systematic risk is
likely to be about
A) 50% of the total risk.
B) 25% of the total risk.
C) 40% of the total risk.
D) zero because risk is eliminated with a portfolio of 50 securities or more.
C
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Identifying capital investment needs falls under which stage of the management process?
A) Planning B) Performing C) Evaluating D) Communicating
Mr. & Mrs. Pribel wish to purchase a boat in 8 years when they retire. They are planning to purchase the boat using proceeds from the sale of their property which is currently worth $90,000 and its value is growing at 7 percent a year
The boat is currently worth $200,000 increasing at 5 percent per year. In addition to the value of their property, how much additional money should they deposit at the end of each year in an account paying 9 percent annual interest in order to be able to buy the boat upon retirement?
On March 1, Sara, a student, received a telephone call from ComputerChip, Inc offering her a job for one year beginning on June 15, after completion of the school year. According to the personnel manager, she will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Sara ask for a letter confirming the telephone conversation if she accepts the offer immediately?
A) Yes, because the job offer is a collateral promise B) Yes, because the job offer is covered by the parol evidence rule C) Yes, because the job offer is for longer than one year from March 1 D) No, because the job offer is for one year from June 15
Which of the following is true of cartoon animation?
A. It is synonymous with slice-of-life advertising. B. It is also known as endorsement advertisement. C. It involves a problem-solution approach. D. It portrays the conflict that people face in their daily lives. E. It is popular for commercials targeted at children.