1. Modern portfolio theory stresses the correlation between: A. particular portfolio and a benchmark portfolio. B. individual securities within a portfolio. C. individual securities macroeconomic variables.   2. The planning step in the portfolio management process includes: A. deciding the asset allocation between equities, fixed income securities and cash. B. preparation of an investment policy… Read More

1. Which of the following is the most appropriate definition of corporate governance? A. A system of defined roles for management and the majority shareholders. B. A system of checks and balances to minimize the conflicting interests among shareowners. C. A system of internal controls and procedures by which individual companies are managed.   2.… Read More

1. Which of the following is leastlikely a secondary source of liquidity? A. Negotiating debt contracts. B. Filing for bankruptcy protection and reorganization. C. Not liquidating assets because of the related cost of giving up a company’s asset.   2. The industry average receivables collection period: A. increased from 2012 to 2013. B. decreased from… Read More

1. K-Electric Power Company is a power generation company, while Procter and Gamble is a consumer products company and Toyota Motors is an automobile manufacturing company. Which of the following is most likely to issue special dividends for sharing profits with shareholders in times of profitability, but conserve cash otherwise? A. K-Electric Power Company. B.… Read More