Product diversification provides two benefits to managers that do not accrue to shareholders: and . a. the manager's supervisory needs are lowered; the manager is allowed greater time to oversee a wider range of activities b. the opportunity for higher compensation through firm growth; a reduction in managerial employment risk c. greater experience in a wider range of industries; lessening of managerial employment risk d. the manager frequently invests in the acquired firm, which allows him or her extensive profits; the manager can frequently buy excess assets divested by the acquired firm 10 points

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.

Which of the statements is true about the values recorded in the balance sheet of a firm?

During the economic periods of , the economy is at its highest point and unemployment is low, in addition, total income is high and consumers are willing to buy products and services.