Even if the correlation between the returns on two securities is +1.0, if the securities are combined in the correct proportions, the resulting 2-asset portfolio will have less risk than either security held alone.
Answer the following statement true (T) or false (F)
False
You might also like to view...
Under the alternative method for accounting for unearned revenue, which of the following pairs of journal entry formats is correct?
A.
| Initial Entry | Adjusting Entry |
| Cash | Unearned Consulting Revenue |
| Unearned Consulting Revenue | Consulting Revenue |
B.
| Initial Entry | Adjusting Entry |
| Cash | Consulting Revenue |
| Consulting Revenue | Unearned Revenue |
C.
| Initial Entry | Adjusting Entry |
| Cash | Consulting Revenue |
| Unearned Revenue | Unearned Revenue |
D.
| Initial Entry | Adjusting Entry |
| Consulting Revenue | Unearned Revenue |
| Cash | Consulting Revenue |
E.
| Initial Entry | Adjusting Entry |
| Cash | Unearned Revenue |
| Unearned Revenue | Cash |
The most widely used nondiscounting model for capital investment decision making is the
A) payback period B) accounting rate of return C) net present value D) internal rate of return E) none of these
Under the doctrine of __________, the plaintiff's negligence is an absolute bar to recovery against the defendant
a. contributory negligence b. comparative negligence c. contribution d. indemnity
Fiori Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Average Cost per UnitDirect materials$6.05 Direct labor$3.05 Variable manufacturing overhead$1.70 Fixed manufacturing overhead$3.00 Fixed selling expense$0.50 Fixed administrative expense$0.40 Sales commissions$1.00 Variable administrative expense$0.50 The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to:
A. $10.80 B. $13.80 C. $14.30 D. $16.20