What are the lessons learned from capital market history? What evidence is there to suggest these lessons are correct?
What will be an ideal response?
First, there is a reward for bearing risk, and second, the greater the risk, the greater the reward. As evidence, the students should provide a brief discussion of the historical rates of return and standard deviation of returns of the various asset classes discussed in the text.
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Which of the following is included in the numerator of the acid-test ratio?
A) cash including cash equivalents, inventory, short-term investments, net current receivables B) accounts receivable and inventory C) cash including cash equivalents, short-term investments, net current receivables D) total current assets
Efficiency and effectiveness mean using resources—people, money, raw materials, and the like—wisely and cost effectively.
Answer the following statement(s) true (T) or false (F)
A retailer's total merchandise available for sale (at cost) is $175,000 . The total in merchandise available for sale at retail equals $255,000 . The retailer's cost complement is 1.46
Indicate whether the statement is true or false
When the drawee bank receives a properly drawn and payable check, the bank is under a duty to honor the check and charge (debit) the drawer's account the amount of the check if there are sufficient funds in the customer's checking account at the bank
Indicate whether the statement is true or false