Which of the following correctly defines the operating cycle?
I). Cash conversion cycle - Accounts payable period.
II). Inventory period + Accounts receivable period.
III). Cash conversion cycle + Accounts payable period.
IV). Inventory period - Accounts receivable period - Accounts payable period.

A portfolio consists of 45% of wealth invested in the market portfolio and the remaining in risk-free
T-bills yielding 6.3%. The market portfolio has an expected return of 17% and a standard deviation of 19%.
The beta of the portfolio is ______.

Which of the following statements concerning valuation allowance for deferred tax assets is FALSE?

One of the discretionary accounts managed by Bill Farnsworth, CFA, is the Jones Corporation employees' profit-sharing plan. Diane Jones, the company president, recently asked Farnsworth to vote the shares in the firm's profit-sharing plan in favor of the company-nominated slate of directors and against the directors sponsored by a dissident stockholder group. Farnsworth does not want to lose this client because he directs all the client's trades to a brokerage firm that provides Farnsworth with useful information about tax-free investments. Although this information is not of value in managing the Jones
Corporation account, it does help in managing several other accounts. The brokerage firm providing this information also offers the lowest prices for trades. Farnsworth investigates the proxy-fight issue, concludes that management's slate of directors is better for the long-run performance of the firm than those recommended by the dissident group, and votes accordingly. Farnsworth:

Toward the top of the economic cycle, as final demand starts to fall off, ______ starts to occur abruptly.