A friend tips you off on a hot stock: Sure Thing Mines Ltd. You only have $10,000 to invest but you want to invest more. Assume that you can borrow an additional $5,000 by short-selling the risk free asset (issuing T-Bills)
You purchase $15,000 worth of shares in Sure Thing Mines Ltd.
The expected returns and standard deviations of the two assets are outlined in the table below:
Asset Expected Return Beta
T-Bills 5.5% 0
Sure Thing Mines 15% 1.70
What is the beta of the portfolio?
A) 1.50
B) 1.70
C) 2.50
D) 2.55
E) 2.70
D
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Top management at Lancer Distributing is convinced that they have a social responsibility to their community. They believe that they can have the greatest impact in this area through cash contributions to nonprofit organizations. This is an example of corporate:
A. guilt payments. B. philanthropy. C. structure and strategy. D. short run profit maximization.
Version management systems ________
A) lack the features needed to track changes to shared documents B) provide features and functions to accommodate concurrent work C) prevent more than one user from checking out the same document simultaneously D) provide version control to limit and direct user activity