Stocks A and B are quite similar: Each has an expected return of 12%, a beta of 1.2, and a standard deviation of 25%. The returns on the two stocks have a correlation of 0.6. Portfolio P has 50% in Stock A and 50% in Stock B. Which of the following statements is CORRECT?
A. Portfolio P has a standard deviation that is greater than 25%.
B. Portfolio P has an expected return that is less than 12%.
C. Portfolio P has a standard deviation that is less than 25%.
D. Portfolio P has a beta that is less than 1.2.
E. Portfolio P has a beta that is greater than 1.2.
Answer: C
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The Fellowes Company has developed standards for direct labor. During June, 75 units were scheduled and 100 were produced. Data related to direct labor are: Standard hours allowed 3hours per unit Standard wages allowed$4.00per hour Actual direct labor 310hours (total cost $1,209) What is the direct labor rate variance for June?
A. $31 unfavorable. B. $31 favorable. C. $30 favorable. D. $30 unfavorable.
Days' payable is the shortest in which of the following industries?
A) Grocery stores B) Computers C) Machinery D) Auto and home supply
Very few purchases are guided by emotional buying motives
Indicate whether the statement is true or false
A company rents a building with a total of 50,000 square feet, which are evenly divided between two floors. The company allocates the rent for space on the first floor at twice the rate of space on the second floor. The total monthly rent for the building is $30,000. How much of the monthly rental expense should be allocated to a department that occupies 10,000 square feet on the first floor?
A. $4,000. B. $5,000. C. $3,000. D. $2,000. E. $8,000.