The joint probability of events A and B is 32 percent with the probability of event A being 60 percent and the probability of event B being 50 percent. Based on this information, the conditional probability of event A given event B has occurred is closest to:
An analyst has calculated the following ratios for a company: Number of days of receivables 48 Number of days of inventory 37 Number of days of payables 28 The cash conversion cycle for the company is closest to:
An analyst gathers the following information about two companies for the year ending 31 December 2008: Company 1 Company 2 Dividend payout ratio 37.5% 40.0% Return on assets 12% 10.0% Financial leverage 1.6 2.0 Which of the following best describes the expected growth rate of Company 1? The expected growth rate of Company 1 compared to Company 2 is
An investor purchases a 1-month out-of-the-money American call option on a stock. A week later, the stock price is less than the call option strike price. The time value of the option is most likely:
Compared to investors with long investment time horizons, investors with short investment time horizons most likely require:
Which of the following statements regarding the Markowitz efficient frontier is least likely to be correct? The optimal portfolio for:
A primary motivation for investment in commodities is most likely the:
An analyst is developing net present value (NPV) profiles for two investment projects. The only difference between the two projects is that Project 1 is expected to receive larger cash flows early in the life of the project, while Project 2 is expected to receive larger cash flows late in the life of the project. The slope of the NPV profile for Project 1 when compared to the slope of the NPV profile for Project 2 is most likely:
There are three cans A, B and C. The capacities of A, B and C are 6 litres, 10 litres and 16 litres respectively. The can C contains 16 litres of milk. The milk has to be divided in them using these three cans only. Consider the following statements : 1. It is possible to have 6 litres of milk each in can A and can B. 2. It is possible to have 8 litres of milk each in can B and can
Tanya is older than Eric. Cliff is older than Tanya. Eric is older than Cliff. If the first two statements are true, the third statement is