Stock a's beta is 1.5 and stock b's beta is 0.5. which of the following statements must be true, assuming the capm is correct.

a. in equilibrium, the expected return on stock b will be greater than that on stock a.
b. stock a would be a more desirable addition to a portfolio then stock b.
c. in equilibrium, the expected return on stock a will be greater than that on b.
d. when held in isolation, stock a has more risk than stock b.

Pressure systems, inc., manufactures high-accuracy liquid-level transducers. it is investigating whether it should update certain equipment now or wait to do it later. if the cost now is $200,000, what will the equivalent amount be 3 years from now at an interest rate of 10% per year?

Vintage fun reproduces oldminusfashioned style roller skates and skateboards. the annual production and sales of roller skates is 950 units, while 1,750 skateboards are produced and sold. the company has traditionally used direct labor hours to allocate its overhead to products. roller skates require 2.5 direct labor hours per unit, while skateboards require 1.25 direct labor hours per unit. the total estimated overhead for the period is $114,300. the company is looking at the possibility of changing to an activityminusbased costing system for its products. if the company used an activityminusbased costing system, it would have the following three activity cost pools: the overhead cost per skateboard using the traditional costing system would be closest to: a. $9.31. b. $65.31. c. $25.05. your answer is not correct.d.

How are interest rates calculated by financial institutions? financial institutions generally calculate interest as (1) interest or (.