The College Copy Shop Is in Process of Purchasing a High-Tech

question 70

Essay

The College Copy Shop is in process of purchasing a high-tech copier. In their search, they have gathered the following information about two possible copiers A and B. (a) Compute expected rate of return for each copier.
(b) Compute variance and standard deviation of rate of return for each copier.
(c) Which copier should they purchase?

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Definitions:

Foreseeable Plaintiff

A person who is readily identifiable as likely to be harmed by the defendant's conduct, thus owed a duty of care in negligence law.

Qualified Opinion

An opinion issued by an auditor saying that, as of a given date, the books of a firm represent its financial health; however, the auditor may qualify the opinion either because the firm is facing some uncertainty that might affect the company in the future or because the firm has deviated from generally accepted accounting principles (GAAP) in some minor way.

Sarbanes-Oxley Act

Legislation that places an affirmative duty on the directors of publicly-traded corporations to monitor whether they are conforming to all legal requirements.

Duty of Care

A legal obligation to adhere to a standard of reasonable care while performing acts that could foreseeably harm others.