Which Statement About the Use of the Profile Model Is

question 89

Multiple Choice

Which statement about the use of the profile model is best?

• A)The profile model requires careful calculation of the percentage risk for each possible project.
• B)The scale used for the profile model can be any two numerical variables that a company deems important.
• C)The efficient frontier in the profile model is where return is 100% (or greater)and risk is 0%.
• D)For a given level of risk,a positive move on the return axes would indicate a superior project.

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Definitions:

Bond Payable

A financial instrument representing a loan made by an investor to a borrower, typically corporate or governmental, with a promise to pay back the principal along with interest on specified dates.

Operating Activities

Activities that constitute the primary or main activities of a company, such as selling goods and services, which are reflected in the income statement.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives.

Direct Method

In cash flow accounting, this method itemizes major classes of gross cash receipts and payments, providing a more detailed view of a company's cash flows from operating activities.