Which of the Following Statements Is Most Correct

question 82

Multiple Choice

Which of the following statements is most correct?

• A) Suppose the returns on two stocks are negatively correlated.One has a beta of 1.2 as determined in a regression analysis,while the other has a beta of −0.6.The returns on the stock with the negative beta will be negatively correlated with returns on most other stocks in the market.
• B) Suppose you are managing a stock portfolio,and you have information which leads you to believe that the stock market is likely to be very strong in the immediate future,i.e. ,you are confident that the market is about to rise sharply.You should sell your high beta stocks and buy low beta stocks in order to take advantage of the expected market move.
• C) In a recent issue,The Wall Street Journal ran a story on a company named Collections Inc. ,which is in the business of collecting past due accounts for other companies,i.e. ,it is a collection agency.According to the Journal,Collections's revenues,profits,and stock price tend to rise during recessions.This suggests that Collections Inc.'s beta should be quite high,say 2.0,because it does so much better than most other companies when the economy is weak.
• D) Statements a and b are both true.
• E) Statements a and c are both true.

Appreciate the role and evolution of writing in ancient societies and its purposes.

Identify ancient cities and their contributions to human history, including architectural and infrastructural innovations.

Acknowledge the diversity of materials and technologies used by ancient civilizations, such as the production of bronze and the use of glass.

Understand the societal structures and urban planning of ancient cities, including their economic systems and the importance of trade routes.

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Definitions:

Constraints

Limitations or restrictions that are placed on a process or system.

IS Environment

Information Systems Environment, referring to the overall conditions and elements that affect how information systems are designed, implemented, and used within an organization.

IT Steering Committee

A committee composed of a group of managers and staff representing various organizational units that is set up to establish IT priorities and to ensure that the MIS function is meeting the needs of the enterprise.

MIS Function

The role of Management Information Systems in processing data to provide information for decision-making.