Which of the following are mechanisms that have evolved to mitigate potential agency problems?

I) Compensation in the form of the firm's stock options

II) Hiring bickering family members as corporate spies

III) Underperforming management teams being forced out by boards of directors

IV) Security analysts monitoring the firm closely

V) Takeover threats

buy the underlying asset at the exercise price on or before the expiration date and sell the option in the open market prior to expiration

sell the underlying asset at the exercise price on or before the expiration date

sell the option in the open market prior to expiration

sell the underlying asset at the exercise price on or before the expiration date and sell the option in the open market prior to expiration

buy the underlying asset at the exercise price on or before the expiration date

$6,000

$6,300

$7,700

$4,000

$7,000

front-end loads and back-end loads

12b-1 charges

front-end loads, back-end loads, and 12b-1 charges

back-end loads

front-end loads

5

6

7

8

1

E(r) = 0.20; Standard deviation = 0.15

E(r) = 0.15; Standard deviation = 0.10

E(r) = 0.10; Standard deviation = 0.10

E(r) = 0.15; Standard deviation = 0.20

E(r) = 0.10; Standard deviation = 0.20

0.8000

Cannot be determined

0.3095

0.41667

0.4667

E(rC) = 7.2 + 3.6 * Standard Deviation of C

E(rC) = 0.2 + 1.167 * Standard Deviation of C

E(rC) = 3.6 + 1.167 * Standard Deviation of C

E(rC) = 3.6 + 12.0 * Standard Deviation of C

E(rC) = 3.6 + 0.857 * Standard Deviation of C

invest only in risky securities

such a portfolio cannot be formed

lend some of her money at the risk-free rate and invest the remainder in the optimal risky portfolio

both borrow some money at the risk-free rate and invest in the optimal risky portfolio and invest only in risky securities

borrow some money at the risk-free rate and invest in the optimal risky portfolio

The portfolio with 20 percent in A and 80 percent in B, and the portfolio with 15 percent in A and 85 percent in B are both on the efficient frontier

The portfolio with 20 percent in A and 80 percent in B

The portfolio with 15 percent in A and 85 percent in B

The portfolio with 26 percent in A and 74 percent in B

The portfolio with 10 percent in A and 90 percent in B

0.40; 0.60

0.66; 0.34

0.77; 0.23

0.23; 0.77

0.34; 0.66