Question

Determine if the following are True or False.

1. For a given? mean, a larger standard deviation means that actual returns that are far from the mean are less likely to occur.

2. If the top of a fraction is unchanged and the bottom of a fraction decreases by? 5%, then the value of the whole fraction would increase by approximately? 5%.

3. The capital budgeting area deals with how the firm should be financed.

4. The working capital management area deals with how much of a? firm’s assets should be held in? cash, inventory and accounts receivable.

5. The goal of the corporate financial manager is to maximize the? firm’s market share.

Answer 1