Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Questions
Q:
Ajax Corporation has recently finished building a new factory. They moved into the factory a month ago and found that it is the perfect size given the amount they want to produce. Ajax is operating in theA) production time. B) corporation time.C) long run. D) short run.
Q:
Which of the following is a correct expression concerning the formula for the standard deviation of returns of a two-asset portfolio where the correlation coefficient is positive?
A. σ2rp < (W12σ12 + W22σ22)
B. σ2rp = (W12σ12 + W22σ22)
C. σ2rp = (W12σ12 - W22σ22)
D. σ2rp > (W12σ12 + W22σ22)
Q:
You are considering adding a new security to your portfolio. To decide whether you should add the security, you need to know the security's:
I. Expected return
II. Standard deviation
III. Correlation with your portfolio
A. I only
B. I and II only
C. I and III only
D. I, II, and III
Q:
What is the proper disposition of a partnership loan that was made from a partner who has a debit balance in the capital account?
A) The loan is ignored in liquidation.
B) The loan is offset against the debit balance in the capital account.
C) The loan is charged off to the capital accounts of all the partners in their profit and loss sharing ratios.
D) The loan is held for payment after all other capital accounts are covered.
Q:
When economic profits are negative, accounting profitsA) must be positive. B) will be negative.C) will equal zero. D) could be positive, negative or zero.
Q:
As you lengthen the time horizon of your investment period and decide to invest for multiple years, you will find that:
I. The average risk per year may be smaller over longer investment horizons.
II. The overall risk of your investment will compound over time.
III. Your overall risk on the investment will fall.
A. I only
B. I and II only
C. III only
D. I, II, and III
Q:
Que, Rae, and Sye are in the process of liquidating their partnership. Sye has agreed to accept the inventory, which has a fair value of $60,000, as part of her settlement. A balance sheet and the residual profit and loss sharing percentages are as follows:
Cash $ 248,000 Accounts payable $ 180,000
Inventory 100,000 Que, capital (40%) 98,000
Plant assets 280,000 Rae, capital (40%) 175,000
Sye, capital (20%) 175,000
Total assets $ 628,000 Total liab./equity $ 628,000
If the partners then distribute the available cash using a safe payments schedule, Sye will receive
A) $ 41,000 cash.
B) $ 51,000 cash.
C) $107,000 cash.
D) $175,000 cash.
Q:
The quantities of Good M are plotted on the vertical axis while the quantities of Good N are plotted on the horizontal axis. The prices of both M and N fall. The intercepts of the budget line would
A) decline along both axes.
B) rise on the vertical axis and also rise on the horizontal axis.
C) rise on the horizontal axis but stay unchanged on the vertical axis.
D) rise on the vertical axis but stay unchanged along the horizontal axis.
Q:
A portfolio of stocks fluctuates when the Treasury yields change. Since this risk cannot be eliminated through diversification, it is called
__________.
A. firm-specific risk
B. systematic risk
C. unique risk
D. none of the options
Q:
Use the following information to answer the question(s) below.Lola, Melvin, and Nettie are in the process of liquidating their partnership. Since it may take several months to convert the other assets into cash, the partners agree to distribute all available cash immediately, except for $12,000 that is set aside for contingent expenses. The balance sheet and residual profit and loss sharing percentages are as follows:Cash $ 500,000 Accounts payable $ 225,000Other assets 225,000 Lola, capital (20%) 168,000Melvin, capital (30%) 270,000Nettie, capital (50%) 62,000Total assets $ 725,000 Total liab./equity $ 725,000Using a safe payment schedule, how much cash should Lola receive in the first distribution?A) $ 81,000B) $ 98,000C) $168,600D) $202,500
Q:
Using the above table, what is the maximum number of slices of pizza a rational consumer would buy?A) 4 B) 3 C) 2 D) 1
Q:
Investing in two assets with a correlation coefficient of 1 will reduce which kind of risk?
A. market risk
B. unique risk
C. unsystematic risk
D. none of these options (With a correlation of 1, no risk will be reduced.)
Q:
Two items which have a positive cross price elasticity of demand are referred to asA) luxury goods. B) inferior goods. C) substitutes. D) complements.
Q:
Investing in two assets with a correlation coefficient of -.5 will reduce what kind of risk?
A. market risk
B. nondiversifiable risk
C. systematic risk
D. unique risk
Q:
Use the following information to answer the question(s) below.On June 30, 2011, the Able, Baker, and Charlie partnership had the following fiscal year-end balance sheet:Cash $ 8,000 Accounts payable $ 14,000Accounts receivable 12,000 Loan from Charlie 10,000Inventory 28,000 Able, capital (20%) 28,000Plant assets-net 24,000 Baker, capital (20%) 20,000Loan to Able 12,000 Charlie,capital (60%) 12,000Total assets $ 84,000 Total liab./equity $ 84,000The percentages shown are the residual profit and loss sharing ratios. The partners dissolved the partnership on July 1, 2011, and began the liquidation process. During July the following events occurred:* Receivables of $6,000 were collected.* All inventory was sold for $8,000.* All available cash was distributed on July 31, except for$4,000 that was set aside for contingent expenses.How much cash would Able receive from the cash that is available for distribution on July 31? (Assume a safe payments schedule is used.)A) $ 0B) $ 800C) $2,400D) $4,000
Q:
Price elasticity of demand is the responsiveness of A) the quantity demanded to a change in price. B) demand to a change in supply.C) demand to a change in income.D) demand for a good to a change in the demand for another good.
Q:
What is the most likely correlation coefficient between a stock-index mutual fund and the S&P 500?
A. -1
B. 0
C. 1
D. .5
Q:
Common property isA) property that has mineral or oil deposits.B) a resource that everyone is free to use as much as they want. C) property owned by a group such as a club.D) property that has little economic value.
Q:
Which of the following correlation coefficients will produce the most diversification benefits?
A. -.6
B. -.9
C. 0
D. .4
Q:
The impact of technological change in the health -care area has been to
A) increase both the quality of health care and the monetary costs of health care.
B) increase the monetary costs of health care and decrease the quality of health care.
C) decrease the monetary costs of health care while decreasing the quality of health care.
D) increase longevity but decrease quality of life.
Q:
Which of the following correlation coefficients will produce the least diversification benefit?
A. -.6
B. -.3
C. 0
D. .8
Q:
The Lorenz curve showsA) the demand for jobs. B) the supply of jobs.C) the elasticity of jobs. D) the distribution of income.
Q:
If you want to know the portfolio standard deviation for a three-stock portfolio, you will have to ______.
A. calculate two covariances and one trivariance
B. calculate only two covariances
C. calculate three covariances
D. average the variances of the individual stocks
Q:
If conditions produce a debit balance in a partner's capital account when liquidation losses are allocated, then
A) the partner receives further allocations of liquidation losses, but not gains.
B) the partner receives further allocations of liquidation gains, but not losses.
C) the partner is no longer obligated to partnership creditors.
D) the partner has an obligation of personal net assets to the other partners.
Q:
A jurisdictional dispute is aA) strike by a union in sympathy with another unionʹs strike or cause.B) dispute involving two or more unions over which should have control of a particular jurisdiction.C) business enterprise in which employees must belong to the union before they can be hired and must remain in the union after they are hired.D) legal environment in which businesses may hire nonunion members conditional on their joining the union by some specified date after employment begins.
Q:
Decreasing the number of stocks in a portfolio from 50 to 10 would likely ________________.
A. increase the systematic risk of the portfolio
B. increase the unsystematic risk of the portfolio
C. increase the return of the portfolio
D. decrease the variation in returns the investor faces in any one year
Q:
What has been the impact of the widespread adoption of automated teller machines (ATMs) on the demand for bank tellers?A) The demand for tellers has increased.B) The demand for bank tellers has become more inelastic.C) The demand for bank tellers has become more elastic.D) There has been no change because the ATMs and the employees provide completely different services.
Q:
A simple partnership liquidation requires
A) periodic payments to creditors and partners determined by a safe payments schedule.
B) partnership assets to be converted into cash with full payment made to all outside creditors before remaining cash is distributed to partners.
C) only creditors to be paid in an orderly manner.
D) periodic payments to partners as cash becomes available.
Q:
The stock is ______ riskier than the typical stock.A. 32%B. 15.44%C. 12%D. 38%
Q:
The idea behind antitrust legislation is toA) promote competition in the market. B) justify deregulation of industries. C) implement contestable markets. D) create larger firms.
Q:
In partnership liquidation, how are partner salary allocations treated?
A) Salary allocations take precedence over creditor payments.
B) Salary allocations take precedence over amounts due to partners with respect to their capital interests, but not profits.
C) Salary allocations take precedence over amounts due to partners with respect to their capital profits, but not capital interests.
D) Salary allocations are disregarded.
Q:
_______________ % of the variance is explained by this regression.A. 12B. 35C. 4.05D. 80
Q:
Gains and losses incurred at liquidation are distributed to the partners using the residual profit and loss sharing ratios because
A) using ownership percentages would permit solvent partners to not share profits with insolvent partners.
B) the residual profit and loss ratios represent the ownership percentages.
C) these amounts represent profits and losses from prior periods that would have been shared using the residual profit and loss ratios.
D) using the established profit and loss sharing ratios is not permitted.
Q:
The market structure of monopolistic competition exists when
A) there are a small number of interdependent firms that constitute the entire market.
B) there is a single producer of a product.
C) there are many producers of differentiated products.
D) there are many producers of a homogeneous product.
Q:
The characteristic line for this stock is Rstock = ___ + ___ Rmarket.A. .35; .12B. 4.05; 1.32C. 15.44; .97D. 26; 1.36
Q:
Which of the following procedures is acceptable when accounting for a deficit balance in a partner's capital account during partnership liquidation, if the partner with a negative capital balance is personally insolvent?
A) The partner with a negative capital balance must contribute personal assets to the partnership that are sufficient to bring the capital account to zero.
B) The negative capital balance may be absorbed by those partners having a positive capital balance according to the residual profit and loss sharing ratios that apply to all the partners.
C) The negative capital balance may be absorbed by those partners having a positive capital balance according to the residual profit and loss sharing ratios that apply to those partners having positive balances.
D) The partner with a negative capital balance must contribute personal assets to the partnership that are sufficient to bring the capital account to the same level of the other partners' capital accounts.
Q:
There are 30 firms in an industry. What happens to that industryʹs four -firm concentration when the third- and fourth-largest firms merge?A) Nothing, because their shares are already included in the concentration calculation. B) The industryʹs concentration ratio will fall.C) The industryʹs concentration ratio will increase.D) It is impossible to know without more information.
Q:
This stock has greater systematic risk than a stock with a beta of ___.A. .50B. 1.5C. 2D. 3
Q:
Which statement is correct in describing the rank order of payments as specified by the Uniform Partnership Act?
A) Payments to partners are ranked equally, regardless of underlying basis.
B) Payment to partners with excess capital balances may be placed ahead of payments to creditors.
C) Payments to creditors other than partners are ranked ahead of payments to partners.
D) After payments are made to other creditors and partners with loans to the partnership, payment up to the same amount can be made to partners with capital interests.
Q:
For the monopolistically competitive firm, in both the short run and the long run
A) the demand curve is inelastic.
B) price will exceed marginal cost.
C) there will be no economic profit.
D) production will be at minimum average cost.
Q:
The beta of this stock is ____.A. .12B. .35C. 1.32D. 4.05
Q:
The partners of the Minion, Nocti and Overly partnership share profits and losses in the ratio of 6:3:1, respectively. The partners have decided to liquidate and terminate the partnership. Prior to liquidation, the partnership balance sheet was as follows:
Cash $ 20,000 Liabilities $ 120,000
Inventory 100,000 Minion, capital 60,000
Fixed assets - net 160,000 Nocti, capital 80,000
Overly, capital 20,000
Total assets $ 280,000 Total equity $ 280,000
Required:
Prepare a schedule of liquidation, given that the partnership sold the inventory for $40,000 and the fixed assets for $120,000.
Q:
A monopoly sells 10 units of output at $10. If the MR of the 11th unit is $4.50, then the price of the 11th unit isA) also $10. B) $9.50. C) greater than $10. D) $7.25.
Q:
You find that the annual Sharpe ratio for stock A returns is equal to 1.8. For a 3-year holding period, the Sharpe ratio would equal _______.
A. 1.8
B. 2.48
C. 3.12
D. 5.49
Q:
A cash distribution plan for the Jonah, Krispy, and Lemon partnership was as follows:
Priority
Creditors Jonah Krispy Lemon
First $100,000 100%
Next $180,000 44% 10% 46%
Next $270,000 2/9 1/9 2/3
Remainder 11% 44% 45%
Required:
If $700,000 of cash was distributed by the partnership, how much was received respectively by the priority creditors, Jonah, Krispy, and Lemon?
Q:
In a perfectly competitive market, a firm in long-run equilibrium will be operatingA) to the right of the minimum of the long-run average cost curve. B) to the left of the minimum of the long -run average cost curve.C) at the minimum of the long-run average cost curve. D) at the minimum of the marginal cost curve.
Q:
Which of the following statements is (are) true regarding time diversification?
I. The standard deviation of the average annual rate of return over several years will be smaller than the 1-year standard deviation.
II. For a longer time horizon, uncertainty compounds over a greater number of years.
III. Time diversification does not reduce risk.
A. I only
B. II only
C. II and III only
D. I, II, and III
Q:
Eve, Fig, Gus, and Hal are partners who share profits and losses 50%, 25%, 15%, and 10%, respectively. The partnership will be liquidated gradually over several months beginning January 1, 2011. The partnership trial balance at December 31, 2010 is as follows:
Debits Credits
Cash $ 9,000
Accounts receivable 26,000
Inventory 78,000
Loan to Eve 16,000
Furniture 27,000
Equipment 59,000
Goodwill 10,000
Accounts payable $ 23,000
Note payable 70,000
Loan from Hal 7,000
Eve, capital (50%) 46,000
Fig, capital (25%) 38,000
Gus, capital (15%) 15,000
Hal, capital (10%) 26,000
Totals $ 225,000 $ 225,000
Required:
Prepare a cash distribution plan for January 1, 2011, showing how cash installments will be distributed among the partners as it becomes available. Prepare vulnerability rankings for the partners and a schedule of assumed loss absorption.
Q:
The perfectly competitive firm maximizes profits whenA) it produces and sells the quantity at which the difference between marginal revenue and marginal cost is the greatest.B) it produces and sells the quantity at which marginal revenue and marginal cost are equal. C) it produces and sells the quantity at which the difference between average revenue and average cost is the greatest.D) it produces and sells the quantity at which the difference between price and average cost is the greatest.
Q:
Which of the following provides the best example of a systematic-risk event?
A. A strike by union workers hurts a firm's quarterly earnings.
B. Mad Cow disease in Montana hurts local ranchers and buyers of beef.
C. The Federal Reserve increases interest rates 50 basis points.
D. A senior executive at a firm embezzles $10 million and escapes to South America.
Q:
Alf, Bill, Cam, and Dot are partners who share profits and losses 30%, 20%, 35%, and 15%, respectively. The partnership will be liquidated gradually over several months beginning January 1, 2011. The partnership trial balance at December 31, 2010 is as follows:
Debits Credits
Cash $ 6,000
Accounts receivable 20,000
Inventory 50,000
Loan to Bill 8,000
Furniture 30,000
Equipment 36,000
Goodwill 20,000
Accounts payable $ 23,500
Note payable 60,000
Loan from Cam 12,400
Alf, capital (30%) 24,000
Bill, capital (20%) 18,000
Cam, capital (35%) 24,000
Dot, capital (15%) 8,100
Totals $ 170,000 $ 170,000
Required:
Prepare a cash distribution plan for January 1, 2011, showing how cash installments will be distributed among the partners as it becomes available. Prepare vulnerability rankings for the partners and a schedule of assumed loss absorption.
Q:
Assume that in the short run a firm is producing 100 units of output, has average total costs of $100, and average variable costs of $50. The firmʹs total fixed costs areA) $50. B) $5,000. C) $150. D) $15,000.
Q:
If an investor does not diversify his portfolio and instead puts all of his money in one stock, the appropriate measure of security risk for that investor is the ________.
A. stock's standard deviation
B. variance of the market
C. stock's beta
D. covariance with the market index
Q:
The time period during which all factors of production can be varied is theA) production time. B) calendar year.C) long run. D) short run.
Q:
The partners of Nelatyna Manufacturing have decided to dissolve their partnership as of the end of 2010. The partnership is going to liquidate during the first several months of 2011. The four partners of Nell, Ann, Tyler and Nadine, share profits and losses 35%, 30%, 25%, and 10%, respectively. The partnership trial balance at December 31, 2010 is as follows:
Debits Credits
Cash $ 60,000
Accounts receivable 150,000
Inventory 115,000
Loan to Tyler 20,000
Furniture 86,000
Equipment 147,000
Goodwill 63,000
Accounts payable $ 140,000
Note payable 200,000
Loan from Nell 30,000
Nell, capital (35%) 110,000
Ann, capital (30%) 60,000
Tyler, capital (25%) 73,000
Nadine, capital (10%) 28,000
Totals $ 641,000 $ 641,000
Required:
Prepare a cash distribution plan for January 1, 2011, showing how cash installments will be distributed among the partners as it becomes available. Prepare vulnerability rankings for the partners and a schedule of assumed loss absorption.
Q:
Some diversification benefits can be achieved by combining securities in a portfolio as long as the correlation between the securities is
_____________.
A. 1
B. less than 1
C. between 0 and 1
D. less than or equal to 0
Q:
Tye, Ula, Val, and Watt are partners who share profits and losses 40%, 30%, 20%, and 10%, respectively. The partnership will be liquidated gradually over several months beginning January 1, 2011. The partnership trial balance at December 31, 2010 is as follows:
Debits Credits
Cash $ 3,000
Accounts receivable 19,000
Inventory 25,000
Loan to Val 5,000
Furniture 15,000
Equipment 10,000
Goodwill 12,000
Accounts payable $ 13,600
Note payable 30,000
Loan from Tye 5,000
Tye, capital (40%) 15,000
Ula, capital (30%) 9,000
Val, capital (20%) 12,400
Watt, capital (10%) 4,000
Totals $ 89,000 $ 89,000
Required:
Prepare a cash distribution plan for January 1, 2011, showing how cash installments will be distributed among the partners as it becomes available. Prepare vulnerability rankings for the partners and a schedule of assumed loss absorption.
Q:
When accounting profits are positive, economic profitsA) must be positive. B) will be negative.C) will equal zero. D) could be positive, negative or zero.
Q:
To construct a riskless portfolio using two risky stocks, one would need to find two stocks with a correlation coefficient of ________.
A. 1
B. .5
C. 0
D. -1
Q:
At the end of 2010, the partnership of Piatta, Ragoo, and Sauss was dissolved. By February 1, 2011, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on February 1, 2011 (with partner residual profit and loss sharing percentages) was as follows:
Cash $ 220,000 Piatta,capital (20%) $ 20,000
Ragoo, capital (40%) (180,000)
Sauss, capital (40%) 380,000
Total assets $ 220,000 Total equity $ 220,000
The value of partners' personal assets and liabilities on February 1, 2011 were as follows:
Piatta Ragoo Sauss
Personal assets $ 86,000 $ 310,000 $ 210,000
Personal liabilities 79,000 250,000 250,000
Required:
Prepare the final statement of partnership liquidation.
Q:
The quantity of good Y is measured along the vertical axis, and the quantity of good X is measured along the horizontal axis. If the prices of both good Y and good X rise, the budget lineA) shifts outward to the right and the vertical and horizontal intercepts will both rise. B) shifts inward to the left and both intercepts will decline.C) rotates, rising along the vertical axis but falling along the horizontal axis. D) none of the above
Q:
Diversification can reduce or eliminate __________ risk.
A. all
B. systematic
C. nonsystematic
D. only an insignificant
Q:
The partnership of May, Novem, and Octo was dissolved. By August 1, 2011, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on August 1, 2011 (with partner residual profit and loss sharing percentages) was as follows:
Cash $ 100,000 May, capital (30%) $ 8,000
Novem, capital (20%) (120,000)
Octo, capital (50%) 212,000
Total assets $ 100,000 Total equity $ 100,000
The value of partners' personal assets and liabilities on August 1, 2011 were as follows:
May Novem Octo
Personal assets $ 148,000 $ 240,000 $ 112,000
Personal liabilities 144,000 160,000 120,000
Required:
Prepare the final statement of partnership liquidation.
Q:
After consuming what quantity of pizza does the consumer in the table below experience diminishing marginal utility?A) 1 B) 2 C) 3 D) 4
Q:
The market value weighted-average beta of firms included in the market index will always be _____________.
A. 0
B. between 0 and 1
C. 1
D. none of these options (There is no particular rule concerning the average beta of firms included in the market index.)
Q:
If the price of one good increases, and as a result the demand for another related good falls, the goods areA) substitutes. B) normal goods. C) complements. D) inferior goods.
Q:
A security's beta coefficient will be negative if ____________.
A. its returns are negatively correlated with market-index returns
B. its returns are positively correlated with market-index returns
C. its stock price has historically been very stable
D. market demand for the firm's shares is very low
Q:
The Justin, Kyle, and Lulu partnership was dissolved by the partners on May 1, 2011. Their balance sheet on that date is shown below:
Cash $ 26,000 Liabilities $ 41,000
Other assets 96,000 Loan from Kyle 3,000
Loan to Justin 10,000 Justin,capital (20%) 19,000
Kyle, capital (20%) 26,000
Lulu, capital (60%) 43,000
Total assets $ 132,000 Total liab./equity $ 132,000
In May, other assets with a book value of $46,000 were sold for $50,000 in cash.
Required:
Determine how the available cash on May 31, 2011 will be distributed.
Q:
The balance sheet of the Flail, Gail, and Hale partnership on October 1, 2011 (the date of partnership dissolution) was as follows:
Cash $ 3,000 Liabilities $ 9,000
Other assets 33,000 Loan from Flail 1,000
Loan to Gail 4,000 Flail,capital (20%) 3,000
Gail, capital (30%) 6,000
Hale, capital (50%) 21,000
Total assets $ 40,000 Total liab./equity $ 40,000
In October, other assets with a book value of $15,000 were sold for $17,000 in cash.
Required:
Determine how the available cash on October 31, 2011 will be distributed.
Q:
PricePer Unit Quantity DemandedPer Week$10.00259.50309.00358.50408.00457.50507.00556.50606.00655.50705.0075Refer to the above table. What is the absolute price elasticity of demand when price changes from $6.00 to $6.50?A) 1.60 B) 1.00 C) 0.65 D) 0.60
Q:
The values of beta coefficients of securities are __________.
A. always positive
B. always negative
C. always between positive 1 and negative 1
D. usually positive but are not restricted in any particular way
Q:
A stock has a correlation with the market of .45. The standard deviation of the market is 21%, and the standard deviation of the stock is 35%. What is the stock's beta?
A. 1
B. .75
C. .60
D. .55
Q:
The Catt, Dogg, and Eustus partnership was dissolved by the partners in early 2011. On March 1, the partners prepared the following financial statement before commencement of final liquidation:
Cash $ 80,000 Accounts payable $ 125,000
Accounts Receivable 160,000 Notes payable 70,000
Inventory 130,000 Loan from Dogg 5,000
Loan to Catt 10,000 Catt, capital (20%) 130,000
Loan to Eustus 15,000 Dogg, capital (20%) 95,000
Plant assets-net 210,000 Eustus, capital(60%) 180,000
Total assets $ 605,000 Total liab./equity $ 605,000
Liquidation events in March were as follows:
- Receivables recorded at $120,000 were collected at $110,000;
- Inventory recorded at cost of $80,000 was sold for $60,000;
- Plant assets with a book value of $100,000 were sold for $140,000.
Required:
Determine how the available cash on March 31, 2011 should be distributed.
Q:
Private property rights involveA) exclusive rights to use, transfer, and exchange the property.B) exclusive rights to use property, but not to exchange the property.C) rights to enjoy the property in any way desired but not to transfer or exchange the property.D) rights granted by the government for renewable terms of 100 years or more.
Q:
You are recalculating the risk of ACE stock in relation to the market index, and you find that the ratio of the systematic variance to the total variance has risen. You must also find that the ____________.
A. covariance between ACE and the market has fallen
B. correlation coefficient between ACE and the market has fallen
C. correlation coefficient between ACE and the market has risen
D. unsystematic risk of ACE has risen
Q:
The balance sheet of the Ama, Bade, and Calli partnership on May 1, 2011 (before commencement of partnership liquidation) was as follows:
Cash $ 108,000 Accounts payable $ 56,000
Inventory 120,000 Notes payable 120,000
Loan to Ama 20,000 Ama, capital (30%) 64,000
Loan to Calli 32,000 Bade, capital (50%) 180,000
Plant assets-net 220,000 Calli, capital (20%) 80,000
Total assets $ 500,000 Total liab./equity $ 500,000
Liquidation events in May were as follows:
- The inventory was sold for $12,000 below book value;
- Plant assets with a book value of $100,000 were sold for $120,000.
Required:
Determine how the available cash on May 31, 2011 should be distributed.
Q:
Which of the following is not a reason for rising health care expenditures in the United States over the last 40 years?
A) Aging of the population
B) Technological change
C) Third-party financing of health care expenditures
D) Discovery of new diseases
Q:
The term excess return refers to ______________.
A. returns earned illegally by means of insider trading
B. the difference between the rate of return earned and the risk-free rate
C. the difference between the rate of return earned on a particular security and the rate of return earned on other securities of equivalent risk
D. the portion of the return on a security that represents tax liability and therefore cannot be reinvested
Q:
The Vera, Wade, and Xena partnership was dissolved, and a cash distribution plan was developed, as follows:
Priority
Creditors Vera Wade Xena
First $462,000 100%
Next $173,000 60% 40%
Next $240,000 7/12 5/12
Remainder 20% 30% 50%
Required:
If $1,000,000 of cash was distributed by the partnership, how much was received respectively by the priority creditors, Vera, Wade, and Xena?
Q:
Using a graph, compare the labor-market equilibrium under perfect competition and monopsony. Explain.