If markets are in equilibrium, which of the following conditions will exist?
A. Each stock's expected return should equal its realized return as seen by the marginal investor.
B. Each stock's expected return should equal its required return as seen by the marginal investor.
C. All stocks should have the same expected return as seen by the marginal investor.
D. The expected and required returns on stocks and bonds should be equal.
E. All stocks should have the same realized return during the coming year.
Answer: B
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It is important for the CPA to consider the competence of the entity's employees because their competence bears directly and importantly upon the:
A. timing of the tests to be performed. B. comparison of recorded accountability with assets. C. achievement of the objectives of the system of internal control. D. cost/benefit relationship of the system of internal control.
Which of the following best describes the AICPA's Audit Data Standards (ADS)?
A. A set of standards for data files and fields designed to support external audits. B. A set of analytic procedures designed to be used with modern ERPs' large datasets. C. The base level of testing procedures that should be performed on AIS data. D. The codification of all auditing guidelines pertaining to the data generated by AISs.
What cost concept used in applying the cost-plus approach to product pricing includes only total manufacturing costs in the "cost" amount to which the markup is added?
A) Variable cost concept B) Total cost concept C) Product cost concept D) Opportunity cost concept
Determining worker schedules and possible overtime requirements occur during what type of capacity planning?
a. Short-range b. Intermediate-range c. Long-range d. Extended-range