Question
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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