Compensation of these directors is determined by compensation committees on boards.

A. Inside directors
B. Internal directors
C. Outside directors
D. International directors

Answer: C. Outside directors

Business

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The lump-sum amount paid for a group of assets is divided among the acquired assets based on their relative market values. This method is known as the relative-market-value method

Indicate whether the statement is true or false

Business

The beta of a portfolio

A) does not change over time. B) is irrelevant, only the betas of the individual assets are important. C) is the weighted average of the betas of the individual assets in the portfolio. D) is the sum of the betas of all assets in the portfolio.

Business