Economics

1) The main purpose of descriptive statistics is to A. summarize data in a useful and informative manner B. make inferences about a population C. determine if the data adequately represents the population D. gather or collect data 2) The general process of gathering, organizing, summarizing, analyzing, and interpreting data is called A. statistics B. […]

1) The concept of flexibility in the law is best illustrated by: 2) The school of jurisprudence that believes that free market forces should determine the outcome to lawsuits is: 3) Which of the following is true about litigating commercial disputes? 4) A ___________ is a court appointed party who conducts a private trial and […]

One advantage of dividend reinvestment plans is that they enable investors to avoid paying taxes on the dividends they receive. If a company has an established clientele of investors who prefer a high dividend payout, and if management wants to keep stockholders happy, it should not follow the strict residual dividend policy. If a firm […]

1.A company expects sales to increase during the coming year, and it is using the AFN equation to forecast the additional capital that it must raise. Which of the following conditions would cause the AFN to increase? Answer The company previously thought its fixed assets were being operated at full capacity, but now it learns […]

One advantage of the NPV over the IRR is that NPV takes account of cash flows over a project’s full life whereas IRR does not. One advantage of the NPV over the IRR is that NPV assumes that cash flows will be reinvested at the WACC, whereas IRR assumes that cash flows are reinvested at […]

1) Which of the following statements is CORRECT? Answer a)A two-stock portfolio will always have a lower standard deviation than a one-stock portfolio. b)A portfolio that consists of 40 stocks that are not highly correlated with “the market” will probably be less risky than a portfolio of 40 stocks that are highly correlated with the […]

.Question 1 Which of the following statements is CORRECT? Answer If the underlying stock does not pay a dividend, it does not make good economic sense to exercise a call option prior to its expiration date, even if this would yield an immediate profit. Call options generally sell at a price greater than their exercise […]

Question 1 2 out of 2 points Suppose 6 months ago a Swiss investor bought a 6-month U.S. Treasury bill at a price of $9,708.74, with a maturity value of $10,000. The exchange rate at that time was 1.420 Swiss francs per dollar. Today, at maturity, the exchange rate is 1.324 Swiss francs per dollar. […]

1. Which of the following statement completions is CORRECT? If the yield curve is upward sloping, then the marketable securities held in a firm’s portfolio, assumed to be held for emergencies, should Answer consist mainly of long-term securities because they pay higher rates. consist mainly of short-term securities because they pay higher rates. consist mainly […]

1) Which of the following is best defined as a consciously coordinated social unit, composed of two or more people, which functions on a relatively continuous basis to achieve a common goal or set of goals? a. party b. unit c. team d. community e. organization 2) Over the past 2 decades, business schools have […]