QUESTION: 113

A measure of "risk per unit of expected return."

Standard deviation
Coefficient of variation
Correlation coefficient
Beta

Answer(s): B

Plaid Pants, Inc. common stock has a beta of 0.90, while Acme Dynamite Company common stock has a beta of 1.80. The expected return on the market is 10 percent, and the risk-free rate is 6 percent. According to the capital-asset pricing model (CAPM) and making use of the information above, the required return on Plaid Pants' common stock should be , and the required return on Acme's common stock should be .

3.6 percent; 7.2 percent
9.6 percent; 13.2 percent
9.0 percent; 18.0 percent
14.0 percent; 23.0 percent

Answer(s): B

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QUESTION: 115

Two people wishing to open a checking account may do so in which one of the following ways:

They can each open individual checking accounts (on which the other cannot write checks)
They can open a joint account that requires both signatures on all checks
They can open joint account that allows either one to write checks (the most common type of joint account)
All of the above

Answer(s): D

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QUESTION: 116

After opening the checking account, follow these basic procedures Except:

Always right checks in ink
Include the name of the person being paid the date, and the amount of the check
Note the check's purpose on the check
Sign the check in a different way than on the signature card

Answer(s): D

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QUESTION: 113

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QUESTION: 116