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NEW QUESTION # 124
In finance, beta is a measure of the systematic risk of a security in comparison to the market as a whole. Beta can be found by running a regression analysis of the monthly returns of the security versus the monthly returns of the general market. The regression output table below shows the relationship between Boeing's monthly returns and the monthly returns of the Standard and Poor's 500 (S&P 500) which is a stock market index of 500 large companies.
If beta is the average change in Boeing's monthly returns as the monthly returns of the S&P 500 increase by one, what is Boeing's beta?
Answer: C
NEW QUESTION # 125
In calculating cash flows, which of the following scenarios would lead to a decrease in net working capital?
Answer: D
NEW QUESTION # 126
A firm buys a particular product that has low business impact and low supply market complexity. How would this product be categorized using the Kraljic classification model?
Answer: A
NEW QUESTION # 127
PQR, Inc. is a small manufacturing firm that is rebuilding its customer base after emerging from bankruptcy.
PQR now projects growing demand for its products. PQR's supply manager is planning negotiations with a key supplier that has worked well with the firm in the past. Which of the following is the STRONGEST factor the supply manager can use to improve PQR's negotiating position?
Answer: A
Explanation:
The strongest factor the supply manager can use to improve PQR's negotiating position is that there is considerable competition among suppliers. This factor increases PQR's leverage because it implies that the supplier needs to offer competitive terms to win the business. High competition means that if one supplier is not flexible or favorable in negotiations, PQR can consider alternative suppliers who may be willing to offer better terms.
References
* "Negotiation Genius: How to Overcome Obstacles and Achieve Brilliant Results at the Bargaining Table and Beyond," Deepak Malhotra and Max H. Bazerman.
* "Supply Chain Management: Strategy, Planning, and Operation," Sunil Chopra and Peter Meindl.
NEW QUESTION # 128
What can an analyst conclude about an industry that has a high level of government regulation, including permits and licenses?
Answer: D
NEW QUESTION # 129
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