If an individual causes a loss intentionally, we would say that person is a:
A) careful person
B) physical hazard
C) moral hazard
D) risk manager
C
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In terms of substantiation, if an advertiser uses expert endorsements, then statements in the advertisement must be based on:
A) legitimate tests performed by experts in the field B) the opinion of "typical persons" who would use the product C) truthful statements that represent the experts personal experience D) lab or engineering tests
Days' payable is the shortest in which of the following industries?
A) Grocery stores B) Computers C) Machinery D) Auto and home supply
On March 1, 2016, Nortons, Inc. paid $60,000 as office rent covering the three-month period ending May 31, 2016. Journalize the entry on March 1 by using the alternative treatment of deferred expenses
What will be an ideal response
Consider the following information for three stocks, A, B, and C. The stocks' returns are positively but not perfectly positively correlated with one another, i.e., the correlations are all between 0 and 1. ? Stock Expected Return Standard Deviation ? Beta A 10% 20% 1.0 B 10% 10% 1.0 C 12% 12% 1.4 Portfolio AB has half of its funds invested in Stock A and half in Stock B. Portfolio ABC has one third of its funds invested in each of the three stocks. The risk-free rate is 5%, and the market is in equilibrium, so required returns equal expected returns. Which of the following statements is CORRECT?
A. Portfolio AB has a standard deviation of 20%. B. Portfolio AB's coefficient of variation is greater than 2.0. C. Portfolio AB's required return is greater than the required return on Stock A. D. Portfolio ABC's expected return is 10.66667%. E. Portfolio ABC has a standard deviation of 20%.