If Auditors Are Appointed on January 3,2014,the Date of the Financial

question 60

Multiple Choice

If auditors are appointed on January 3,2014,the date of the financial statements is December 31,2014,the date of the auditors' report is February 7,2015 and the audit report release date is March 3,2015,what is the appropriate date of the written representations?

• A) January 3, 2014
• B) December 31, 2014
• C) February 7, 2015
• D) March 3, 2015

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Definitions:

Market Risk Premium

The extra return expected by investors from holding a risky market portfolio instead of risk-free assets.

Security Market Line

A graphical representation used in financial markets to illustrate the relationship between risk and return for individual securities.

Reward-To-Risk Ratio

A measure used in finance to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield of government bonds from stable governments.