1. Assume you are considering combining two investments to fon a portfolio and you want to minimize the risk on the new portfolio. You should select assets:

a. Using a random method

b. With returns that are positively correlated to cach other

c. With returns that are negatively correlated to each other

d. With returms that are uncorrelated to each other

2. Ralph puts money in the bank and earms a 5 percent nominal interest rate for one year. If the inflation rate is 3 percent, then at the end of the year

a. Ralph will have 5 percent more money in the bank, which will purchase 8 percent more goods

b. Ralph will have 5 percent more money in the bank, which will purchase 2 percent more goods

c. Ralph will have 3 percent more money in the bank, which will purchase 2 percent more goods

d. Ralph will have 3 percent more money in the bank, which will purchase 8 percent more goods

3. Which of the listed expenditures would most likely be claified as manufacturing overhead?

a. Freight cost to ship items sold to customers

b. Sales commissions

c. Uility cost in the factory

d. Salary paid to the company president's secretry

4. What are the four elements of the marketing mix?

a. product, price, promotion, and distribution

b. sales promotion, advertising, penonal selling, and public relations

c. promotion, channels, and management

d. good, service, idea, and experiensce