Which of the following is a disadvantage of skill-based pay systems?
A. Lesser paperwork
B. Reduced employee empowerment
C. No guarantee that employees can use their new skills
D. Reduced opportunities for promoting employees
E. Discouraged job enrichment
Answer: C. No guarantee that employees can use their new skills
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If you plotted the returns of Selleck & Company against those of the market and found that the slope of your line was negative, the CAPM would indicate that the required rate of return on Selleck's stock should be less than the risk-free rate for a well-diversified investor, assuming that the observed relationship is expected to continue in the future
a. True b. FalseIndicate whether the statement is true or false
Ultimate authority for risk management lies with
a. legal counsel b. the head trader c. senior management d. the internal auditors e. the external auditors