Use the Table for the Question(s)below

question 63

Multiple Choice

Use the table for the question(s) below.
-Consider an ETF that is made up of one share each of IBM,MRK,and C.The minimum bid price for this ETF in a normal market is closest to:

• A)$265.29.
• B)$265.44.
• C)$270.00.
• D)$270.15.

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Definitions:

Break-Even Point

The point at which total costs and total revenues are equal, meaning there is no profit or loss.

Variable Expenses

Expenses that change in proportion to the level of activity or volume, such as raw material costs or utility expenses.

Selling Price

The amount for which a product is sold to the customer, generally set above the cost to include a profit margin.

Margin Of Safety

The difference between actual or expected sales and sales at the break-even point, measured in either units or revenue.