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Question
The financial statements of Flathead Lake Manufacturing Company are shown below:
Note: The common shares are trading in the stock market for $15 per share
Refer to the financial statements of Flathead Lake Manufacturing Company. The firm's current ratio for 2012 indicates that Flathead's liquidity has ________ since 2011.
A. risen
B. fallen
C. stayed the same
D. The answer cannot be determined from the information given.
Answer
This answer is hidden. It contains 66 characters.
Related questions
Q:
Which of the following does not approximate the performance of a buy-and-hold portfolio strategy?
A. An equally weighted index
B. A price-weighted index
C. A value-weighted index
D. All of these options (Weights are not a factor in this situation.)
Q:
Under a "passive core" portfolio management strategy, a manager would ___________.
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B. index part of the portfolio and actively manage the rest
C. delegate the management of core segments of the portfolio to other managers
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Q:
An active asset allocation strategy involves _________.
A. investing in the stock of companies that are price takers
B. maintaining approximately the same proportions of a portfolio in each asset class over time
C. varying the proportions of a portfolio in each asset class in response to changing market conditions
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Q:
An employee has an average wage of $60,000 and has worked for the firm for 25 years. The defined benefit pension plan pays retirees 2.5% of the average wage times the years of service. The employee can expect to receive _______ per year upon retirement.
A. $18,000
B. $37,500
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D. $55,250
Q:
For a bank, the difference between the interest rate charged to borrowers and the interest rate paid on liabilities is called the __________.
A. insurance premium
B. interest rate spread
C. risk premium
D. term premium
Q:
Which one of the following would be considered a "cash equivalent" investment?
A. Treasury bills
B. Common stock
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D. Real estate
Q:
You are thinking of investing in one of two assets. Asset A has higher systematic risk than asset B. You can be sure that asset A's _______ return will be higher than asset B's, but you can't be sure if asset A's _______ return will be higher than asset B's.
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B. real; nominal
C. expected; realized
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Q:
Major functions of the investment committee include all but which one of the following?
A. Engage in security selection for each portfolio managed
B. Broadly determine the overall asset allocation of the investment company
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Q:
The asset universe is the _____________________.
A. set of investments in which an investment company can legally invest
B. existing set of assets the investment company currently owns in one or more of its portfolios
C. list of assets approved by the investment committee that may be placed into the investment company's portfolio
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Q:
An investor is looking at different retirement investment choices, and he is willing to accept one with upside potential even if that means sacrificing certainty. Which of the following will he most likely select?
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Q:
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I. The fund should have a target rate of return of at least 10%.
II. The limitations on spending require that the fund limit its considerations to growth stocks.
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Q:
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A. return requirement
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C. liquidity
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Q:
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What is the amount of the total contribution to his 403b if John contributes 5% of his own money?
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B. $8,400
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Q:
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Q:
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A. 15; 20
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Q:
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A. a bond portfolio
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Q:
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C. tax deductible; not tax deductible
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Q:
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Q:
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A. older workers
B. high-income workers
C. younger workers
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Q:
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A. income
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Q:
Tilting your retirement savings plan toward your later years should only be done by investors _____________.
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II. Durability of marriage
III. Expected length of your base (Social Security) annuity
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Q:
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A. traditional retirement plan
B. Roth retirement plan
C. 401k plan
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Q:
A decrease of 1% in both your tax exemption and your income tax rate would, on net, _______________.
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B. make you worse off
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Q:
A typical hedge fund incentive bonus is usually equal to ________ of investment profits beyond a predetermined benchmark index.
A. 5%
B. 10%
C. 20%
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Q:
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A. September; lower
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Q:
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Q:
You manage a $15 million hedge fund portfolio with beta = 1.2 and alpha = 2% per quarter. Assume the risk-free rate is 2% per quarter and the current value of the S&P 500 Index is 1,200. You want to exploit the positive alpha, but you are afraid that the stock market may fall and you want to hedge your portfolio by selling 3-month S&P 500 future contracts. The S&P contract multiplier is $250.
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Q:
You manage a $15 million hedge fund portfolio with beta = 1.2 and alpha = 2% per quarter. Assume the risk-free rate is 2% per quarter and the current value of the S&P 500 Index is 1,200. You want to exploit the positive alpha, but you are afraid that the stock market may fall and you want to hedge your portfolio by selling 3-month S&P 500 future contracts. The S&P contract multiplier is $250.
When you hedge your stock portfolio with futures contracts, the value of your portfolio beta is __________.
A. 0
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D. The answer cannot be determined from the information given.