Determine if the following are True or False. 1. For a given? mean, a larger sta

Question

Determine if the following are True or False.

1. For a given? mean, a larger standard deviation means that actual returns that are far from the mean are less likely to occur.

2. If the top of a fraction is unchanged and the bottom of a fraction decreases by? 5%, then the value of the whole fraction would increase by approximately? 5%.

3. The capital budgeting area deals with how the firm should be financed.

4. The working capital management area deals with how much of a? firm’s assets should be held in? cash, inventory and accounts receivable.

5. The goal of the corporate financial manager is to maximize the? firm’s market share.

Explanation / Answer

1. True

A low standard deviation indicates that the data points tend to be close to the mean(also called the expected value) of the set, while a high standard deviation indicates that the data points are spread out over a wider range of values.

2.True

3.false

4.True

Positive working capital is required to ensure that a firm is able to continue its operations and that it has sufficient funds to satisfy both maturing short-term debt and upcoming operational expenses. The management of working capital involves managing inventories, accounts receivable and payable, and cash.

5) Flase

Thanks

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