Fishing supply company, Outside Tackle, has its returns graphed ...

[bobypop]

Fishing supply company, Outside Tackle, has its returns graphed against the market returns for a 5 year period. The line that has the best fit for the data has the formula y = .1254 + 1.265x. What information can we derive from this?
 
  A) The beta of Outside Tackle is .1254.
  B) The systematic risk of Outside Tackle is less than average for the market.
  C) The beta for Outside Tackle is 1.265.
  D) Outside Tackle has posted better returns than the market for this time period.

Question 2

Which of the following transactions will decrease a corporation's retained earnings?
 
  A) The corporation declares and pays a 2 per share cash dividend.
  B) The company completes a 2 for 1 stock split.
  C) The company pays a 20 stock dividend.
  D) Both A and C

[ebonylittles]

Answer to Question 1

C

Answer to Question 2

D