Exhibit 712
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 12

Multiple Choice

Exhibit 7.12
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c } \text { Asset 1 } & \text { Asset 2 } \\\hline E \left( R _ { 1 } \right) = .12 & E \left( R _ { 2 } \right) = .16 \\E \left( \sigma _ { 1 } \right) = .04 & E \left( \sigma _ { 2 } \right) = .06\end{array}$$
-Refer to Exhibit 7.12. Calculate the expected returns and expected standard deviations of a two stock portfolio when r_1,2 = .80 and w₁ = .60.

• A).144 and .0002
• B).144 and .0018
• C).136 and .0045
• D).136 and .0455
• E).136 and .4554

Understand the concept and process of closing entries in accounting.

Identify the sequence of steps in the accounting cycle.

Calculate working capital and interpret its significance.

Determine and analyze the current ratio as a measure of liquidity.

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Definitions:

Central Route

A method of persuasion that involves deep processing of information, focusing on the arguments and content to change attitudes.

Peripheral Route

A method of persuasion that relies on superficial cues rather than the merit of the argument itself, often found in the Elaboration Likelihood Model of persuasion.

Sleeper Effect

A delayed increase in the persuasive impact of a message, where its influence grows stronger with time after its initial presentation.

Discontinuity Effect

The finding that groups are more extreme, and often more hostile, than individuals.