In general, higher confidence levels provide

A. wider confidence intervals.
B. narrower confidence intervals.
C. a smaller standard error.
D. unbiased estimates.


Answer: A

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Financial forces such as inflation and taxation are considered uncontrollable because

A. they are unpredictable. B. there is nothing a manager can do to adjust to them, so the recommended approach is to ignore them. C. they are external forces beyond the influence of the firm, around which a manager can manage. D. they are external to the firm and their influence is to be avoided.

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In foreign licensing, licensors run the risk that unethical licensees may become their competitors, using information that they gained from the licensing agreement.

Answer the following statement true (T) or false (F)

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Which of the following is a "higher the better" measure?

A) only Sharpe's measure B) only Treynor's measure C) only Jensen's measure D) All three are "higher the better" measures.

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Which of the following describes an early step in the implementation phase of the systems life cycle?

A) The system is detailed functionally, and then its physical design is specified. B) Programs and computer files are designed. C) Operational feasibility is conducted. D) Data and procedures from the old system are converted.

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