The Systematic Response Coefficient for Productivity,β_p,would Produce an Unexpected Change

question 16

Multiple Choice

The systematic response coefficient for productivity,β_p,would produce an unexpected change in any security return of (β_P × ________) if the expected rate of productivity was 1.5 percent and the actual rate was 2.25 percent.

• A).75 percent
• B)−.75 percent
• C)2.25 percent
• D)− 2.25 percent
• E)1.5 percent

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Definitions:

Cumulative Earnings

The total amount of net income a company has earned over its existence, after dividends and other distributions are subtracted.

Accounting Equation

A fundamental principle representing the relationship among assets, liabilities, and owner's equity (Assets = Liabilities + Owner's Equity).

Transactions

The exchange of goods, services, or funds between two or more parties in accounting, each recorded as an entry.

Inventory

The goods and materials that a business holds for the ultimate goal of resale or use in production.