%" Format as Table Delete Anal Cell Styles Format Dat Number Styles Cells Editing Analy MyEducator Tasks principal to be higher. 17) A portfolio manager wants to increase or maintain client returns while mitigating their risk What decision should this portfolio manager make to achieve this goal? O Move all investments to the United States where companies are more stable O Purchase stocks that are similar and positively correlated with one another O Transfer all investments to stocks in the industry with the most growth O Avoid risk by not choosing investments deemed to be too risky 18) Which bond will have the lowest return? O An Australian bond that has a credit rating of AAA E Home End Num Lock NW 3 3009 Rain coming ~$ Caprlock, Stok Format D Number Styles Cells Editing Anal MyEducator Tasks 18) Which bond will have the lowest return? O An Australian bond that has a credit rating of AAA A United States bond that has a credit rating of AA OA Brazilian bond that has a credit rating of BB O An Israeli bond that has a credit rating of A (19) An investor is trying to decide whether to invest retirement savings in a savings account or in stock market mutual funds. The investor notices that the average returns for the last few years of the stock mutual funds are significantly higher than the savings account's returns but does not understand why this might be. What information should be shared to help the investor correctly understand the relationship between risk and return? 47 crall kert Syska Dwap Brick End Num Lock Rain coming 12:55 PM 6/8/2022 Copn lock San Cell Styles Format Analyz Data R Number Styles Cells Editing Analysis MyEducator Tasks (19) An investor is trying to decide whether to invest retirement savings in a savings account or in stock market mutual funds. The investor notices that the average returns for the last few years of the stock mutual funds are significantly higher than the savings account's returns but does not understand why this might be. What information should be shared to help the investor correctly understand the relationship between risk and return? O Since the stock mutual funds have a greater amount of potential risk, investors require a higher return for these investments. O The amount of return each investment provides is unrelated to risk, so the decision should solely be based on how convenient the investment is O Since the savings account has a higher amount of systematic risk, investors require a lower return for this investment. O The stock mutual funds have the same amount of risk as the savings account, so both should provide the same amount of return. 100% Rain coming 1255PM 40 w/4/2022 Scroll I Paves 40 Lock Syska Nulk Caps lack Sofias $ % 9 +2 Format as Table Delete P Cell Styles Format Number Styles Cells Editing Ad Educator Tasks O The stock mutual funds have the same amount of risk as the savings account, so both should provide the same amount of return. 20 How are ratios used in business finance? O Ratios provide answers to questions about why financial changes occur in a firm. O Ratios standardize financial data to make firms of different sizes comparable. O Ratios are created by generally accepted accounting principles (GAAP) to control the way firms use their assets. O Ratios make financial data transparent so that no information is hidden. + Next 10P Rain coming 12:56 PM w/2022 Educator Tasks Cells 02:16:25 Editing (21) Which type of ratio analysis occurs when a financial analyst is making a comparison of a firm's performance against the industry? O Progress analysis O Cross-sectional analysis O Trend analysis O Regression analysis (22) Which ratio is used to determine the value of a stock based on earnings? ONet margin Gross margin 100% 12:36 PM Rain coming 40 Pet S Syska iroor Pouss Break Now look Cops lock Sonil Lork insert $-%9 Format as Table- Delete Cell Styles Format F Number Styles Cells Editing MyEducator Tasks Trend analysis O Regression analysis (22) Which ratio is used to determine the value of a stock based on earnings? O Net margin O Gross margin O Times interest earned ratio O Price-to-earnings ratio (23) A firm has a current ratio of 5.4 and a quick ratio of 2.3, while the industry norm is 4.5 for the current ratio and 3.2 for the quick ratio. What does the comparison of the current ratio and quick ratio of the firm to the industry indicate? O The firm has lower inventory holding than the industry average Sopll Look 100% Rain coming 1236 PM ww Per Sz Educator Tasks O Price-to-earnings ratio Cells Eating Analysis (23) A firm has a current ratio of 5.4 and a quick ratio of 2.3, while the industry norm is 4.5 for the current ratio and 3.2 for the quick ratio. What does the comparison of the current ratio and quick ratio of the firm to the industry indicate? O The firm has lower inventory holding than the industry average. O The firm has higher inventory holding than the Industry average. O The firm has lower accounts receivable holding than the industry average. O The firm has higher accounts receivable holding than the industry average. (24) Which type of ratio should be used to evaluate the 40 Insert Pang Home End 100% Rain coming A 40 1256 PM 6/6/2022 Num Lock Now Lock Cops Lick Send turk MyEducator Tasks O The firm has higher accounts receivable holding than the industry average. (24) Which type of ratio should be used to evaluate the current share price of a public firm? O Liquidity O Profitability Market O Activity 25) The following table shows four ratios of two companies in the technology industry Average Collection Period Inventory Turnover Debt Ratio Mot Marain Pruhart Tech Synestho 70 days 100 days 6.4x 2.1K 60% 104 10 30% www.y Pet S Sys nort Rain coming 12:56PM 06/2012 41010 Num Lock Gags Lock Home End Num Lock Delete Page 7 Up Home 00-> 9 7g Up Format Outs Number Styles Cells Eating Analysi MyEducator Tasks (25) The following table shows four ratios of two companies in the Sept technology industry. Pruhart Tech Synestho Average Collection Period 70 days 100 days Inventory Turnover 64x 21 Debt Ratio 30% 60% Net Margin 10% 10% Based on these ratios, which statement correctly compares Pruhart Tech and Synesthor? O Pruhart Tech has better production cost efficiency than Synesthor O Pruhart Tech manages inventory more efficiently than Synesthor. O Pruhart Tech is more conservatively financed than Synesthor. O Pruhart Tech's credit standard is not as strict as that of Synesthor End 12:56 PM Kain coming d 631 9 Delete Poge 7 Up Foge Down 7y5m Exter