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Question
What is the standard deviation of the returns on a portfolio that is invested in Stocks A, B, and C? Twenty percent of the portfolio is invested in Stock A and 35 percent is invested in Stock C.
| State of Economy | Probability of State of Economy | Rate of Return if State Occurs | ||||||||||
| Stock A | Stock B | Stock C | ||||||||||
| Boom | .04 | .17 | .09 | .09 | ||||||||
| Normal | .81 | .08 | .06 | .08 | ||||||||
| Recession | .15 | − | .24 | .02 | − | .13 | ||||||
A) 6.31 percent
B) 6.49 percent
C) 7.38 percent
D) 5.65 percent
E) 7.72 percent
Answer
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B) general partnerships.
C) limited partnerships.
D) corporations.
E) limited liability companies.
Q:
The Sarbanes-Oxley Act of 2002 holds a public company's ________ responsible for the accuracy of the company's financial statements.
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C) external legal counsel
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Q:
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B) growth rate of the firm.
C) gross profit per unit produced.
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Q:
A partnership with four general partners:
A) distributes profits based on percentage of ownership.
B) has an unlimited partnership life.
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D) limits each partner's personal liability to 25 percent of the partnership's total debt.
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B) the partner's active participation in the firm's activities.
C) the lack of any potential financial loss.
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E) the partner's maximum loss is limited to their capital investment.
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Which one of the following statements concerning a sole proprietorship is correct?
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B) The profits of a sole proprietorship are subject to double taxation.
C) The owner of a sole proprietorship is personally responsible for all of the company's debts.
D) There are very few sole proprietorships remaining in the U.S. today.
E) A sole proprietorship is structured the same as a limited liability company.
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Which one of the following questions is least likely to be addressed by financial managers?
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B) Should customers be given 30 or 45 days to pay for their credit purchases?
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Q:
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A) how many shares of stock to issue.
B) whether or not to purchase a new machine for the production line.
C) how to refinance a debt issue that is maturing.
D) how much inventory to keep on hand.
E) how much money should be kept in the checking account.
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The date on which a shareholder is officially listed as the recipient of stock rights is called the:
A) issue date.
B) offer date.
C) declaration date.
D) holder-of-record date.
E) ex-rights date.