1A) Which of the following red flags would you find using the DuPont formula?

(1) Increased financial leverage

(2) Deteriorating profit margin

(3) Increasing Tax liabilities

(4) Deteriorating Turnover

	a.	1 and 2 only
	b.	1, 2, and 4
	c.	1 and 3 only
	d.	1, 2, 3, and 4

1B) You have been taught that in order to expect higher returns, you need to accept increased risk. In describing this concept, what is the correct ranking of asset securities from probable least market-price volatility, lowest expected return to probable highest market-price volatility, highestexpected return:

(1) Large Cap Value stock fund,

(2) Long-term Treasury/Sovereign Bonds

(3) Preferred Stock portfolio,

(4) Emerging-market mutual fund,

(5) Money market fund.

	a.	5, 3, 2, 1, 4
	b.	2, 3, 5, 4, 1
	c.	3, 5, 2, 4, 1
	d.	5, 2, 3, 1, 4