Exercise 5-2: Answer the questions in the space provided. Use the following abbre- viations to identify reports: IS (income statement); BS (balance sheet); CFS (cash
flow statement)
1. What report(s) show the net income or net loss?
2. What report(s) show the cash balance?
3. What report(s) show total fixed assets?
4. What report(s) show common stock?
5. What reports(s) show cash at the beginning of the period?
6. What report(s) show note payable accounts?
7. What report(s) show total expenses?
8. What report(s) show the gross profit?
9. What report(s) show cost of goods sold?
10. What report(s) show dividends?

Stocks a, b, and c are similar in some respects: each has an expected return of 10% and a standard deviation of 25%. stocks a and b have returns that are independent of one another; i. e., their correlation coefficient, r, equals zero. stocks a and c have returns that are negatively correlated with one another; i. e., r is less than 0. portfolio ab is a portfolio with half of its money invested in stock a and half in stock b. portfolio ac is a portfolio with half of its money invested in stock a and half invested in stock c. which of the following statements is correct? a. portfolio ab has a standard deviation that is greater than 25%.b. portfolio ac has an expected return that is less than 10%.c. portfolio ac has a standard deviation that is less than 25%.d. portfolio ab has a standard deviation that is equal to 25%.e. portfolio ac has an expected return that is greater than 25%.