CornProducts Corp

question 12

Multiple Choice

CornProducts Corp. ended the year 2013 with an average collection period of 40 days. The firm's credit sales for 2011 were $9 million. What is the approximate year-end 2013 balance in accounts receivable for Corn Products?

• A)$225,000
• B)$986,300
• C)$4,444,400
• D)$360,000,000

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Definitions:

Mean-Variance Efficient Portfolio

An investment portfolio constructed to offer the highest expected return for a given level of risk, or the lowest risk for a given level of expected return, based on mean-variance optimization.

Expected Returns

The anticipated profit or loss from an investment, based on projections or historical data.

Variances of Returns

A statistical measure of the dispersion of returns for a given security or market index, often used to quantify risk.

Mean-Variance Efficient Portfolio

A portfolio constructed to have the highest possible return for a given level of risk, or equivalently, the lowest risk for a given level of expected return, according to Harry Markowitz's theory.