Make any capital investment decision

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1. The variance of a two-security portfolio decreases as the return correlation of the two securities A. increases B. cannot be determined C. decreases D. changes in either direction

2. What is the primary factor/measurement used to make any capital investment decision?

3. Tubby toys estimates that its new line of rubber ducks will generate sales of $8.00 million, operating costs of $5.00 million , and a depreciation expense of $2.00 million . If the tax rate is 40% what is the firms operating cash flow.

Reference no: EM131972627

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