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Refer to the graph.Each labeled point represents a different asset.For which of these assets would we not expect arbitrage to change the average expected rate of return?
Selling and Administrative Costs
Expenses related to the selling of products and the management of the company, not directly tied to the production process.
Sunk Cost
An expense that has been incurred and cannot be recouped.
Manufacturing Costs
The total expense involved in the manufacture of a product, including direct labor, direct materials, and manufacturing overhead.
Scrap Metal
Waste metal material that can be recycled or reused, often collected and sold by businesses or individuals.
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