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NEW QUESTION: 1
Cavanaugh Inc. has a beta of 1.2. Next year you project the market will earn 12% and the risk free rate will be 5%. If you buy Cavanaugh you project your return will be 13%. Thus you think:
A. Cavanaugh will outperform the market on a risk-adjusted basis.
B. Cavanaugh's performance has nothing to do with the market return.
C. Cavanaugh will underperformed the market on a risk-adjusted basis.
D. Cavanaugh's performance will just matched the market return on a risk-adjusted basis.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
Rs = Rf + B(Rm - Rf)Rs = .05 + 1.2(.12-.05)Rs = .134 or 13.4%You project Cavanaugh will out perform the market.
NEW QUESTION: 2
The run chart created during the Perform Quality Control process on a project is used to show the:
A. relationship between two variables
B. most common cause of problems in a process
C. frequency of occurrence
D. data points plotted in the order in which they occur
Answer: D
NEW QUESTION: 3
Which one of the following contains information that is passed to service transition to enable the implementation of a new service?
A. A service design package (SDP)
B. A service transition package (STP)
C. A service charter
D. A service option
Answer: A
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