You Have the Following Data on (1)the Average Annual Returns

question 31

Multiple Choice

You have the following data on (1) the average annual returns of the market for the past 5 years and (2) similar information on Stocks A and B.Which of the possible answers best describes the historical betas for A and B? $$\begin{array} { c r c c } \underline{\text { Years }} & \underline { \text { Market } } & \underline { \text { Stock A } } &\underline{ \text { Stock B }}\\ 1 & 0.03 & 0.16 & 0.05 \\2 & - 0.05 & 0.20 & 0.05 \\3 & 0.01 & 0.18 & 0.05 \\4 & - 0.10 & 0.25 & 0.05 \\5 & 0.06 & 0.14 & 0.05\end{array}$$

• A)b_A > +1; b_B = 0.
• B)b_A = 0; b_B = ?1.
• C)b_A < 0; b_B = 0.
• D)b_A < ?1; b_B = 1.
• E)b_A > 0; b_B = 1.

Prepare financial statements from adjusted trial balance data.

Understand the process and purpose of reversing entries.

Analyze trial balance data for adjustments and closing.

Understand the process for closing accounts at the end of an accounting period.

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Definitions:

Alienation

The feeling of being isolated and disconnected from one’s work, society, or sense of self.

Vertical Loading

A management concept involving the process of delegating more responsibilities and higher-level tasks to employees to increase their involvement and motivation.

Performance Accountability

Involves holding employees or organizations responsible for achieving performance objectives and standards.

Performance Feedback

The process of providing constructive information and evaluations to employees about their work performance.