Which of the following statements is not true of futures contracts?

• A.All futures contracts are highly standardized and trade on organized exchanges.
• B.Futures contracts may be customized to meet the needs of specific parties.
• C.The clearinghouse serves to guarantee performance by the parties to a futures contract.

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The following table presents selected common-size income and balance sheet data for Curative
Drugs.

What can be said about Curative's liquidity?

• A.With increasing current assets as proportion of total assets, its liquidity is deteriorating.
• B.Due to lower ROE, its liquidity is declining as it is becoming less profitable.
• C.Based on the information provided, nothing can be concluded about Curative's liquidity.

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Choose the correct statement.

• A.A portfolio with a Treynor ratio of 1 is better than the market portfolio.
• B.A portfolio with a Sharpe ratio of 2 is better than the market portfolio.
• C.We can never conclude that a portfolio is better than the market portfolio or not by looking at the portfolio's Sharpe ratio or Treynor ratio only.

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In a statement of cash flows, the acquisition of land by issuing capital stock:

• A.Is shown as an investing/financing activity.
• B.Is shown in a supplementary schedule as a noncash investing and financing transaction.
• C.Is not shown at all, since no cash was received or disbursed.

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Which of the following measurements can be found for a portfolio by simply taking the weighted average of the individual components.
I). Beta
II). Return
III). Standard deviation

• A.I and II.
• B.II and III.
• C.I, II and III.

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