Table 93
a Firm Has the Following Demand Forecasts for the the Five

question 94

Multiple Choice

Table 9.3
A firm has the following demand forecasts for the five markets that it serves:
$$\begin{array} { | c | c | c | } \hline \text { Market } & \text { Coordinates } & \begin{array} { c } \text { Demand } \\\text { Forecast }\end{array} \\\hline \mathrm { A } & ( 3,1 ) & 10 \\\mathrm {~B} & ( 12,9 ) & 12 \\\mathrm { C } & ( 9,14 ) & 9 \\\mathrm { D } & ( 8,8 ) & 4 \\\mathrm { E } & ( 2,10 ) & 15 \\\hline\end{array}$$
-Use the information in Table 9.3.What is the center of gravity?

• A) x ? 7, y ? 8
• B) x > 7, y ? 8
• C) x ? 7, y > 8
• D) x > 7, y > 8

---

Definitions:

Factor Portfolio

A portfolio constructed to have a high sensitivity to a specific factor or factors, used to capture returns associated with those factors.

Well-Diversified

A portfolio strategy involving the mix of different investments to reduce exposure to risk.

Beta

A scale for determining the level of fluctuation or consistent risk in a security or portfolio compared with the overall market.

Risk Premium

The additional return an investor expects to receive for taking on additional risk compared to a risk-free asset.