The implementation of a pro-active ethics program is expected to ...

[fnuegbu]

The implementation of a pro-active ethics program is expected to result in ________.
 
  A) a positive corporate image and increased respect, but is not expected to affect cash flows
  B) an increased share price resulting from a decrease in risk, but is not expected to affect cash flows
  C) a positive corporate image and increased respect, but is not expected to affect share price
  D) a positive corporate image and increased respect, a reduction in risk, and enhanced cash flow resulting in an increase in share price

Question 2

Nicole holds three stocks in her portfolio: A, B, and C. The portfolio beta is 1.40. Stock A comprises 15 percent of the dollar value of her holdings and has a beta of 1.0.
 
  If Nicole sells all of her investment in A and invests the proceeds in the risk-free asset, her new portfolio beta will be ________.
  A) 0.60
  B) 0.88
  C) 1.00
  D) 1.25

[BAOCHAU2803]

Answer to Question 1

D

Answer to Question 2

D

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TYSM

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Gracias!