Stocks A and B each have an expected return of 12%,a beta of 1.2,and a standard deviation of 25%.The returns on the two stocks have a correlation of 0.6.Portfolio P has 50% in Stock A and 50% in Stock B.Which of the following statements is correct?
A) Portfolio P has a beta that is greater than 1.2. B) Portfolio P has a standard deviation that is greater than 25%. C) Portfolio P has a standard deviation that is less than 25%. D) Portfolio P has a beta that is less than 1.2.
Which of the following entries records the investment of cash by Taylor Thomas, owner of a proprietorship?
A) debit Taylor Thomas, Capital; credit Accounts Receivable B) debit Cash; credit Taylor Thomas, Capital C) debit Taylor Thomas, Drawing; credit Cash D) debit Cash; credit Taylor Thomas, Drawing
Howard Company purchased merchandise inventory with an invoice price of $7000 and credit terms of 2/10 n/30. What is the net cost of the goods if Howard Company pays within the discount period?
When groupthink occurs in highly cohesive groups, poor decisions may result from the members' tendencies to do all of the following EXCEPT:
A) being unwilling to criticize one another's ideas and suggestions. B) underemphasizing agreement. C) desiring to hold the group together. D) underemphasizing critical discussion. E) seeking to avoid unpleasant circumstances.