Claris corporation (a multi-product company) produces and sells 7,000 units of product x each year. each unit of product x sells for $12 and has a contribution margin of $4. if product x is discontinued, $19,000 of the $32,000 in fixed costs charged to product x could be eliminated. if product x is discontinued, what will happen to the company's overall operating income? a. decrease by 4,000 per year b. increase by $9,000 per year c. decrease by $9,000 per year d. increase by $4,000 per year

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%.