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The chapter discussed four infamous ethics cases in accounting: (a) Charles Ponzi, (b) Adelphia Communications Corporation, (c) Enron/Arthur Andersen and (d) Bernie Madoff.Indicate which case is most closely associated with each of the following items.1.Created from a merger of two other companies in the natural gas and pipeline industries
2.Filed for bankruptcy in December 2001
3.Filed for bankruptcy in June 2002
4.Harry Markopolos
5.International postal reply coupons
6.John and Gus Rigas
7.Most business came from the financial division
8.One family received more than $2 billion in loans from the company
9.Perpetrator was turned in by his sons
10.Sentenced to five years in federal prison for mail fraud
SMB Beta
A measure used in the evaluation of stocks, indicating a stock's sensitivity to movements in the small minus big (SMB) factor, part of the Fama-French three-factor model.
HML Beta
A measure of sensitivity to the HML (High Minus Low) factor, part of the Fama-French three-factor model, indicating how much a stock's return is affected by the value premium.
Risk Premium
The additional return expected on an investment for taking on higher risk compared to a risk-free asset.
SMB Beta
A measure used in financial models to estimate the sensitivity of a stock’s return relative to the return of a small-minus-big (SMB) factor, part of the Fama-French three-factor model.
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