Hedge fund managers today construct a portfolio with a beta that:
A. is lower in rising markets and a higher in falling markets.
B. is higher in rising markets and lower in falling markets.
C. is market neutral.
D. is not relevant.
B. is higher in rising markets and lower in falling markets.
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Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2,460 per month plus $49 per boat. For the month of April, the company planned for activity of 58 boats, but the actual level of activity was 18 boats. The actual cleaning equipment and supplies for the month was $3,470.The spending variance for cleaning equipment and supplies in April would be closest to:
A. $1,832 F B. $128 U C. $1,832 U D. $128 F
The primary goal of installing an ERP system is reducing system maintenance costs
Indicate whether the statement is true or false
A & B Commercial Cleaning is a new business. During its first year of operations, credit sales were $42,000 and collections from credit sales were $31,000. One account for $625 was written off. Management uses the percent-of-sales method to account for bad debts expense and estimates 2% of credit sales to be uncollectible. What is the balance of Accounts Receivable at the end of the first year?
A) $11,000 B) $9535 C) $10,375 D) $10,160
Answer the following statements true (T) or false (F)
1. To create goal congruence, some firms prefer calculating ROI based on the gross book value of asset. 2. If upper management uses a short time frame to calculate ROI and RI, division managers have an incentive to take actions that will lead to an immediate increase in these measures 3. If managers are measured on short-term financial performance only, they may not introduce new products 4. The limitations of financial performance measures reinforce the importance of the balanced scorecard. 5. The transfer price is the transaction amount of one unit of goods when the transaction occurs between the company and its customers.