What did Carver do? The activity level at which profits are maximized C. Stock B also has a beta of 1. Which of the following statements must be true, according to the CAPM?
The beta of the portfolio is larger than the Fin 534 quiz of the betas of the individual stocks. It includes all costs which are part of cost of goods sold, plus variable operating expenses. Which one of the following describes the break-even point? Assume that the risk-free rate is a constant.
Costs are classified based on behavior. This is especially true if the company finances with more debt than the average firm. The margin of safety ignores fixed costs.
If an investor buys enough stocks, he or she can, through diversification, eliminate all of the diversifiable risk inherent in owning stocks. A large portfolio of stocks whose betas are greater than 1.
Why is identification of a relevant range important fro CVP? All of the statements above are true. Diversifiable risk can be reduced by Fin 534 quiz a large portfolio, but normally even highly-diversified portfolios are subject to market or systematic risk.
Total fixed costs D. All costs are variable costs. It estimated its break-even income level for the year. It is required under GAAP. As long as the contribution margin is a positive number, net income will be positive.
As long as variable costs are more than fixed costs, net income will be negative. Answer A large portfolio of randomly selected stocks will always have a standard deviation of returns that is less than the standard deviation of a portfolio with fewer stocks, regardless of how the stocks in the smaller portfolio are selected.
It established its desired annual income for its product lines. If the expected rate of inflation increases but the market risk premium is unchanged, the required returns on the two stocks should increase by the same amount. The effect of a change in the market risk premium depends on the level of the risk-free rate.
It directly impacts the number of units of a product a customer buys. The beta of the portfolio is less than the average of the betas of the individual stocks. Stock B must be a more desirable addition to a portfo Going to college can be exciting, as well as stressful.
Net income will be higher using GAAP compared to using variable costing.
Costs and expenses are classified by product versus perioD. It is the point where total variable costs equal total fixed costs. Fixed costs per unit It includes all costs which are part of cost of goods solD. The level of activity in which all costs are constant It should emphasize both products, since they are equally profitable D.
An investor can eliminate virtually all diversifiable risk if he or she holds a very large, well diversified portfolio of stocks. McCargo Company sells two products, Gumbo and Jumbo.
Net income will be lower using GAAP compared to using variable costing. Which one of the following is true? Answer The riskiness of the portfolio is greater than the riskiness of each of the stocks if each was held in isolation. Answer An investor can eliminate virtually all market risk if he or she holds a very large and well diversified portfolio of stocks.
Sales in units remains constant.Feb 06, · We have all assignments, quizzes, homework problems and discussion questions for FIN and many other Strayer classes. Email us if you need help with your classes. [email protected] CHAPTER 1.
similar essays. fin week 3 – quiz 2 chapters 3, 4, and 5 ; mkt week 3 quiz 2 chapter 3 & 4 ; mkt week 3 quiz 2 chapter 3 & 4. FIN Midterm Exam 1 1. Of the following investments, which would have the lowest present value? Assume that the effective annual rate for all investments is the same and is greater than zero.
Suppose you believe that Florio Company's stock price is going to decline from its current level of $ sometime during the next 5 months. For $ you could buy a 5-month put option giving you the right to sell 1 share at a price of $85 per share.
Fin Week 4 Quiz 5 Answers. FIN Quiz 4 Question 1 Assume that in recent years both expected inflation and the market risk premium (rM− rRF) have declined. Flipsnack is a digital catalog maker that makes it easy to create, publish and share html5 flipbooks. Upload a PDF or design from scratch flyers, magazines, books and more.
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