1. Capital market history shows us that the correct ordering of the average arithmetic mean return for asset classes from lowest to highest is:
A. Long term U.S. government bonds, U.S. Treasury Bills, small-company stocks, large-company stocks.
B. U.S. Treasury Bills, small-company stocks, large-company stocks, long-term government bonds.
C. Long term U.S. government bonds, U.S. Treasury Bills, large-company stocks, small-company stocks.
D. U.S. Treasury Bills, long-term government bonds, large-company stocks, small-company stocks.
E. U.S. Treasury Bills, long-term government bonds, small-company stocks, large-company stocks.
2. if a firm is operating at its full capacity, any increase in sales will require?
a. economies of sale
b. financing feedbacks
c. spontaneously generated funds
d. additional assets
e. financing adjustments