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26.Suppose that Stock X has lower beta than Stock Y. Which of the following are true? Stock X will lower higher returns than Stock Y

26.Suppose that Stock X has lower beta than Stock Y. Which of the following are true?

Stock X will lower higher returns than Stock Y

Stock X has lower standard deviation than Stock Y

Stock X has lower correlation with the market than Stock Y

Stock X has lower systematic risk than Stock Y

Stock X has lower Sharpe ratio than Stock Y

27.Consider the following selected data items from Willowares Corp.'s balance sheet. What is its net operating working capital (NOWC)?

Assets Liabilities & Equity
Cash $350 Accounts payable $200
Short-term investments $425 Accrued liabilities $300
Accounts receivable $400 Notes payable $500
Inventory $800 Long-term Debt $300
Net Fixed Assets $1,200 Retained Earnings $800

$1,050

$1,550

$1,475

$2,250

$1,875

28.Which of the following statements is correct?

Collecting on Accounts Receivable will increase the Quick Ratio.

If Current Assets and Current Liabilities both increase by $1,000, the Quick Ratio remains constant.

Selling Inventories for Cash will lower the Current Ratio.

The Quick Ratio is always lower than the Current Ratio.

If Current Assets and Current Liabilities both increase by $1,000, the Current Ratio remains constant.

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