Vernon company sells a wide range of goods through two retail stores operated in adjoining cities. vernon purchases most of the goods it sells in its stores on credit, promising to pay suppliers later. occasionally, a short-term note payable is used to obtain cash for current use. the following transactions were selected from those occurring during the fiscal year, which ends on december 31: purchased merchandise on credit for $18,000 on january 10. borrowed $45,000 cash on march 1 from city bank by signing an interest-bearing note payable. the note is due at the end of six months (august 31) and has an annual interest rate of 10% payable at maturity.

Stock a has a beta of 1.2 and a standard deviation of 20%. stock b has a beta of 0.8 and a standard deviation of 25%. portfolio p has $200,000 consisting of $100,000 invested in stock a and $100,000 in stock b. which of the following statements is correct? (assume that the stocks are in equilibrium.) (a) stock b has a higher required rate of return than stock a. (b) portfolio p has a standard deviation of 22.5%. (c) portfolio p has a beta equal to 1.0. (d) more information is needed to determine the portfolio's beta. (e) stock a's returns are less highly correlated with the returns on most other stocks than are b's returns.

Christopher kim, cfa, is a banker with batts brothers, an investment banking firm. kim follows the energy industry and has frequent contact with industry executives. kim is contacted by the ceo of a large oil and gas corporation who wants batts brothers to underwrite a secondary offering of the company's stock. the ceo offers kim the opportunity to fly on his private jet to his ranch in texas for an exotic game hunting expedition if kim's firm can complete the underwriting within 90 days. according to cfa institute standards of conduct, kim: a) may accept the offer as long as he discloses the offer to batts brothers.b) may not accept the offer because it is considered lavish entertainment.c) must obtain written consent from batts brothers before accepting the offer.

An essential element of being receptive to messages is to have an open mind true or false