1. Joi, Inc., stock has an annual return mean and standard deviation of 18 percent and 22 percent, respectively. What is the smallest expected loss, in percentages, in the coming month with a probability of 2.5 percent?
2. Reed Machinery just signed a capital lease agreement with a present value of $130,000. How would this lease first appear on Reed Machinery’s balance sheet?
3. Effective diversification requires implementing the most diversification possible. True or False?