1. A mechanic starts his business with
$10000 worth of tools. What entries
should be made to record this
transaction?
(A)
(B)
(C)
(D)
Dr. Capital A/c; Cr. Tools A/c
Dr. Tools A/c; Cr. Capital A/c
Dr. Bank A/c; Cr. Capital A/c
Dr. Capital A/c; Cr. Bank A/

Consider a treasury bill with a rate of return of 5% and the following risky securities: security a: e(r) = .15; variance = .0400 security b: e(r) = .10; variance = .0225 security c: e(r) = .12; variance = .1000 security d: e(r) = .13; variance = .0625 the investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. the security the investor should choose as part of her complete portfolio to achieve the best cal would be a. security a b. security b c. security c d. security d