29.Company A has sales of $20,000, assets of $5,000, a debt ratio of 40%, and an ROE of 30%. Company B has the same sales, assets, and net income, but it has a debt ratio of 25% percent. What is B's ROE? (Hint: Use the Du Pont equation.)

3.0%

4.0%

18.0%

6.0%

24.0%

30.Which of the following corporate governance provisions describes the shareholder rights plan that is commonly used as a defensive tactic to prevent hostile takeovers?

Dual class shares

Anti-greenmail

Supermajority voting requirements

Poison pill

CEO-chairperson duality

31.A portfolio consists of two stocks, which are somewhat positively correlated. Your investment in each stock is non-negative. Which of the following is true?

The portfolio can have lower alpha than both stocks.

The portfolio can have lower Sharpe ratio than both stocks.

The portfolio can have lower expected return than both stocks.

The portfolio can have lower beta than both stocks.

The portfolio can have lower volatility than both stocks.