A director is disqualified from taking part in corporate action with respect to a matter in which the director has a disclosed conflicting interest
Indicate whether the statement is true or false
False
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Provide responses to the following questions regarding the discount rate.
Portfolio AB was created by investing in a combination of Stocks A and B. Stock A has a beta of 1.2 and a standard deviation of 25%. Stock B has a beta of 1.4 and a standard deviation of 20%. Portfolio AB has a beta of 1.25 and a standard deviation of 18%. Which of the following statements is CORRECT?
A. Stock A has more market risk than Stock B but less stand-alone risk. B. Portfolio AB has more money invested in Stock A than in Stock B. C. Portfolio AB has the same amount of money invested in each of the two stocks. D. Portfolio AB has more money invested in Stock B than in Stock A. E. Stock A has more market risk than Portfolio AB.
According to Table 8-7, which describes an investment problem, suppose that Ivana has assigned the following risk factors to each investment instrument — CDs (C): 1.2; stocks (S): 4.8; money market mutual fund (M): 3.2
If Ivana decides that she wants the risk factor for the whole investment to be less than 3.3, how should the necessary constraint be written? A) 1.2C + 4.8S + 3.2M ? 3.3 B) C + S + M ? 3.3 C) 1.2C + 4.8S + 3.2M ? 3.3(C + S + M) D) (1.2C + 4.8S + 3.2M)/3 ? 3.3 E) S = 0
Use this information for questions that refer to the United Tools case.Terry Harter is marketing manager for United Tools, and Mike O'Reilly is the firm's logistics manager. They work together to make decisions about how to get United's hand and power tools to its customers-a mix of manufacturing plants and final consumers (who buy United tools at a hardware store). United Tools does not own its own transport facilities, and it works with wholesalers to reach its business customers.Together, Harter and O'Reilly try to coordinate transporting, storing, and product-handling activities to minimize cost while still achieving the customer service level their customers and intermediaries want. This usually requires that United keep an inventory of most of its products on hand; but demand for
its products is fairly consistent over time, so inventory is easy to manage.Harter has identified four options for physical distribution systems she could use to reach two of her key wholesalers, Ralston Supply and Ricotta Tool Co. The total cost for each option-and the distribution service levels that can be achieved-are as follows:
Ralston Supply expects a very high level (90 percent) of distribution customer service. Ricotta Tool Co. is willing to settle for a 70 percent customer service -leveleven if that means some products will occasionally be out of -stockif it gets products at a lower price.For its large retail hardware customers (like Home Depot), United regularly ships smaller orders directly to individual stores or in some cases to the retail chain's warehouses. Cross-country shipments usually go by rail, while regional shipments usually go by truck. It appears that United Tools
A. needs to buy its own fleet of trucks.
B. uses the distribution system with the lowest transportation cost.
C. is implementing the physical distribution concept.
D. works to provide just-in-time delivery to both of its wholesalers.
E. All these answers are correct.