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NEW QUESTION: 1
Bill Turner is a security analyst for Secure-Invest Inc. The firm has concerns about the equal borrowing and lending rate assumption made by the traditional capital asset pricing model (CAPM), and, instead, tells Turner to use the zero-beta CAPM when selecting assets. Turner finds that the return on the zero-beta portfolio exceeds the risk-free rate. Which of the following most accurately describes the effect of relaxing the equal borrowing and lending assumption?
A. The slope of the security market line will decrease.
B. The slope of the security market line will increase.
C. The slope of the security market line will stay the same.
Answer: A
NEW QUESTION: 2
All of the following are the factors on which audit work schedules may be based on EXCEPT:
A. The length of time since the area was last audited and the extent and type of findings in the last audit.
B. Audits prioritized based on assessment of the degree of risk of potential loss (such as potential loss of dollars, lives, or of public trust) associated with the audit area.
C. Audit work schedules (e.g., activities to be audited, time frames for audit, resource estimates).
D. The occurrence of major recent changes in operations, programs, systems, or controls and the availability of audit staff resources.
Answer: C
NEW QUESTION: 3
A. Option C
B. Option E
C. Option A
D. Option D
E. Option B
Answer: C,D
NEW QUESTION: 4
A. No
B. Yes
Answer: B