Circle the best answer to the question.

A Statement of Cash Flows reconciles a firm's profitability and its a. b. c. Stock price b. Cash on hand c. Current liabilities A key reason for the difference between a company's profitability and cash is the gap between a. b. c. Accounts Payable and Current Liabilities b. Accounts Receivable and Accounts Payable c. Current Assets and Current Liabilities Risk is defined as: a. b. c. The amount of money you earn on an investment The chance that the actual return on an investment will differ from its expected return c. The chance that the actual return on an investment will be the same as its expected return The risk/return curve is: a. Upward sloping b. Downward sloping c. c. A horizontal line that intersects the vertical axis at the risk-free rate of return Beta is a measure of a. b. c. The amount of risk that a stock contributes to the market portfolio The expected return on a stock c. The amount of variance in the return on a stock The SML, Security Market Line, which plots beta, or risk, along the horizontal axis, and the required rate of return on a security along the vertical axis, is: a. Downward sloping meaning the higher the beta, the lower the required return b. Upward sloping meaning the higher the beta, the higher the required return c. c. Horizontal meaning beta and required returns are not related