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1. An indirect cost of bankruptcy is the loss of key employees.
[A] True
[B] False
2. A legal attempt to financially restructure a failing firm so that it can continue operating as a going concern is called a reorganization.
What share price would you expect after the announcement? Is the expansion a good investment?
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An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 18% and a standard deviation of return of 20%. Stock B has an expected return of 14% and a standard deviation of return of 5%. The correlation co..
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