Suppose you observe the following situation: state of economy probability of state of economy rate of return if state occurs stock a stock b boom .21 .189 .097 normal .74 .158 .076 recession .05 - .246 .042 assume the capital asset pricing model holds and stock a's beta is greater than stock b's beta by .84. what is the expected market risk premium?

a. 10.06 percent
b. 8.28 percent
c. 7.81 percent
d. 9.05 percent
e. 7.94 percent

Which of the following statements is true regarding the reporting of outside interests and the management of conflicts? investigators are responsible for developing their own management plans for significant financial interests. the institution must report identified financial conflicts of interest to the u.s. office of research integrity. investigators must disclose their significant financial interests related to their institutional responsibilities and not just those related to a particular project. investigators must disclose all of their financial interests regardless of whether they are related to a research project.

True or false: a fitted model with more predictors will necessarily have a lower training set error than a model with fewer predictors.

Which of the following would not generally be a motive for a firm to hold inventories? a. to decouple or separate parts of the production process b. to provide a stock of goods that will provide a selection for customers c. to take advantage of quantity discounts d. to minimize holding costs e. all of the above are functions of inventory.