..ll AT&T; 12:10 AM @ 63% - × 300 Final MOCK Sp 17.pdf Na 1 of 18 Final Mosk Ind
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..ll AT&T; 12:10 AM @ 63% - × 300 Final MOCK Sp 17.pdf Na 1 of 18 Final Mosk Indicate wbether the statement is true or false 1. Some partners im a partnership may have diffierent rights, privileges, and responsibilities than other partmars Class: a Truc b. False 2. It is possible foe a firm to have a positive beta, even if the correlation between its returns and those of another firm is negative a True b. Falsc Financialinstitutions are more diversified today than they were in the past, when federal laws kept investment banks, commercial banks, insurance companies, and similar organizations quite separate. Today the larger financial services corporations offer a variety of services, ranging from checking accounts, to insurance, to underwriting securities, to stock brokcrage. a True b. False 4. Midway through the life of an amortized loan, the percentage of the payment that represents interest must be equal to the percentape that repeesents repayment of principal. This is true regardless of the oeiginal life of the loan or the intcrest rate on the loan. a Truc b. False 5. When a loan is amortized, a relatively Jow percentage of the payment goes to reduce the outstanding principal in the early years, and the principal repayment's percentage increases in the loan's later years a. True b. False 6. The Foderal Reserve tnds to take actions to incrcase interest rates when the cconomy is very strong and to decrease rales whem the economy is weak a True b. False 7. A hostile takeover is said to occur when another corporation or group of investors gains voting control over a fem and replaces the old managers. If the old managers were managing the firm inefficiently, then hostile takeovers can improve the economy. However, hostile takeovers are controversial, and legislative actions have been taken to make them more difficuh to undertake. a True b. False 8. Ifa stock's expocted return as seen by the marginal investor excoeds this investor's roquired return, then the investor will buy the stock until its price has risen enouph to bring the expected rctum down to equal the roquired return a True b. False opyright Cengage Leaming Powered by Cogner Page Open With PrintExplanation / Answer
1.) Some partners in a partnership may have different rights, priviledges and responsibilities from other partners.
The given statement is False.
2.) It is possible for a firm to have positive beta, even if the correlation between its returns and those of another firm is negative.
The given statement is True. This is because the beta is calculated with reference to market and not with respect to correlation with other firms.
3.) Today the large financial corporations offer a variety of services, ranging from checking accounts to insurance, to underwriting securities to stock brokerage.
The given statement is True.
4.) This is true regardless of original life or interest rate on the loan.
The given statement is False. This is because the midway payment depends on the interest rate levied and the tenure of the loan. The generic rule is not true.
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