New Car Owners Were Asked to Evaluate Their Experiences in Buying

question 55

Multiple Choice

New car owners were asked to evaluate their experiences in buying a new car during the past 12 months. In the survey, the owners indicated they were most satisfied with their experiences at the following three dealers (in no particular order) : Subaru, Honda, and Buick. Assuming that each set of rankings is equally likely, what is the probability that owners ranked Subaru third?

• A) 1/3
• B) 1/6
• C) 1/2
• D) 5/6
• E) 6/6

Know how to close accounts, including income summary and dividends, at the end of the fiscal year.

Comprehend the process of preparing financial statements from a worksheet.

Recognize errors in post-closing trial balances and understand how to correct them.

Understand the distinctions between various trial balances used in accounting.

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Definitions:

Market Portfolio

A theoretical bundle of investments that includes all types of assets available in the financial market, with each asset weighted according to its market capitalization.

No-Arbitrage Condition

A principle asserting that equivalent assets or combinations of assets should have the same price to prevent the possibility of risk-free profit through arbitrage.

Well-Diversified Portfolios

Investment portfolios that are spread across various assets to minimize exposure to any single asset or risk.