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NEW QUESTION: 1
DRAG DROP
Answer:
Explanation:
NEW QUESTION: 2
The difference between an international fund and a global fund is:
A. an international fund invests in both domestic and foreign securities while a global fund invests only in foreign securities.
B. None of the above is a true statement.
C. an international fund invests only in stocks of foreign companies whereas a global fund invests in both stocks and bonds of foreign companies.
D. a global fund has more currency risk exposure than an international fund.
Answer: B
Explanation:
Explanation/Reference:
Explanation: None of the choices is a true statement. An international fund is one that invests only in foreign securities, while a global fund also invests in domestic (i.e., U.S.) securities. Because of this, it would be the international fund that has more currency risk exposure. Both types of funds may invest in stocks and bonds.
NEW QUESTION: 3
If the estimated life of a long-term asset is increased, which of the following is true?
I. The depreciation expense increases
II. Taxes decrease
III. Income increases
IV. Cashflow decreases
A. I, III & IV
B. I & III
C. I & II
D. III & IV
Answer: D
Explanation:
Explanation/Reference:
Explanation:
The increase in the asset's life estimate decreases the depreciation expense. Hence, income increases, taxes increase and cashflow decreases (due to higher taxes).
NEW QUESTION: 4
What coefficient of correlation results from the following data?
A. Cannot be determined from the data given.
B. 0
C. 1
D. +1
Answer: B
Explanation:
The coefficient of correlation (in standard notation, r) measures the strength of the linear relationship. The magnitude of r is independent of the scales of measurement of x and y. Its range is -1 to +1. A value of -1 indicates a perfectly inverse linear relationship between x and y. A value of zero indicates no linear relationship between x and y. A value of 1 indicates a perfectly direct relationship between x and y As x increases by 1, y consistently decreases by 2. Hence, a perfectly inverse relationship exists, and r must be equal to -1.