Which of the Following Statements Is CORRECT

question 24

Multiple Choice

Which of the following statements is CORRECT?

• A) If you found a stock with a zero historical beta and held it as the only stock in your portfolio, you would by definition have a riskless portfolio.
• B) The beta coefficient of a stock is normally found by regressing past returns on a stock against past market returns.One could also construct a scatter diagram of returns on the stock versus those on the market, estimate the slope of the line of best fit, and use it as beta.However, this historical beta may differ from the beta that exists in the future.
• C) The beta of a portfolio of stocks is always larger than the betas of any of the individual stocks.
• D) It is theoretically possible for a stock to have a beta of 1.0.If a stock did have a beta of 1.0, then, at least in theory, its required rate of return would be equal to the risk-free (default-free) rate of return, r_RF.
• E) The beta of a portfolio of stocks is always smaller than the betas of any of the individual stocks.

Comprehend the significance and recording procedures of transfers and interfund activities.

Recognize the treatment and reporting requirements for various types of governmental fund transactions including bond issuances, purchases, and grants.

Understand the concepts underpinning governmental accounting standards, including classification and reporting of fund balances.

Grasp the budgeting process within governmental accounting including preparation and amendment of budgets.

---

Definitions:

Phenytoin

An anticonvulsant medication used to control seizures by slowing down impulses in the brain that cause seizures.

Pruritus

A sensation that causes the desire or reflex to scratch due to irritation of the skin.

Digoxin

A medication used to treat various heart conditions, particularly heart failure and atrial fibrillation.

Therapeutic Range

The concentration range of a drug within the blood that is considered effective and safe.