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NEW QUESTION 40
To minimize me risk of a two-stock portfolio, a company should most likely purchase stocks that have
- A. negatively correlated expected returns
- B. no correlated expected returns
- C. equally correlated expected returns
- D. positively correlated expected returns
Answer: A
NEW QUESTION 41
London Corporation has in the following cost structure for two of its product.
Assume that me current sales level is 15,000 units of Product A and 5,000 units of Product B Using cost-volume-profit analysis which of the following courses of action would maximize profit in the short term?
Assume that fixed costs are sunk costs in the short term.
- A. Continue to make and sell Product A only.
- B. Continue to make and sell both Product A and Product B
- C. Continue to make and sell Product B only
- D. Discontinue making and selling Doth products
Answer: A
NEW QUESTION 42
An accounting manage’ is deciding which performance measurement tool would be most appropriate to compare firms within their company s industry given that the firms vary in size significantly. Which one of the following analysis methods would be the most appropriate?
- A. Sensitivity analysis
- B. Cash flow analysis
- C. Horizontal analysis
- D. Vertical analysis
Answer: D
NEW QUESTION 43
……