... transferringownership, and (4) difficulty of raising large amounts of capital. The tax treat-ment of a partnership is similar to that for proprietorships, which is often anadvantage, as we demonstrate in Chapter ... FINANCIAL MANAGEMENT 4 The purpose of this chapter is to give you an idea of what financial managementis all about. After you finish the chapter, you should have a reasonably good idea of what finance ... in-formation: (1) name of the proposed corporation, (2) types of activities it willpursue, (3) amount of capital stock, (4) number of directors, and (5) names andaddresses of directors. The charter...
... Deviation, A statistical measure of thevariability of a set of observations. CHAPTER 6 ■ RISK AND RATES OF RETURN 242 MEASURING STAND-ALONE RISK: THE COEFFICIENT OF VARIATIONIf a choice has ... return6-10Portfolio beta6-9Required rate of return6-8Required rate of return CHAPTER 6 ■ RISK AND RATES OF RETURN266THE IMPACT OF INFLATIONAs we learned in Chapter 5, interest amounts to “rent” ... return of 7 percent, a standard deviation of expected returns of 35 percent, a correlation coefficient with the market of Ϫ0.3, and a beta coefficient of Ϫ0.5. Security B has an expected return of...