The points that do not fall onto the characteristic line for a ...

[809779]

The points that do not fall onto the characteristic line for a company don't do so because of
 
  A) Market risk.
  B) Non-Diversifiable risk.
  C) Total Risk.
  D) Firm-Specific risk.
  E) Standard Deviation of Returns.

Question 2

Rawhide Outfitters had projected its sales for the first six months of 2012 to be as follows:
 
  Jan. 50,000 April 180,000
  Feb. 60,000 May 240,000
  Mar. 100,000 June 240,000
  Cost of goods sold is 60 of sales. Purchases are made and paid for two months prior to the sale.
  40 of sales are collected in the month of the sale, 40 are collected in the month following the
  sale, and the remaining 20 in the second month following the sale. Total other cash expenses are
  40,000/month. The company's cash balance as of March 1st, 2012 is projected to be 40,000, and the
  company wants to maintain a minimum cash balance of 15,000. Excess cash will be used to retire
  short-term borrowing (if any exists). The firm has no short-term borrowing as of March 1st, 2012.
  Assume that the interest rate on short-term borrowing is 1 per month. What was Rawhides'
  projected loss for March?
  A) 184,000 B) 84,000
  C) 110,000 D) none of the above

[adammoses97]

Answer to Question 1

D

Answer to Question 2

D

[809779]

Thank you

[adammoses97]

Happy to help you