Which of the Following Is not a Major Difference Between

question 121

Multiple Choice

Which of the following is not a major difference between the capital market line (CML) and the capital asset pricing model (CAPM) ?

• A) Definitions of portfolio risk are based on systematic and total risk
• B) One is related to the market portfolio, the other does not
• C) The number of calculations to determine risk is significantly greater for one method
• D) One requires a tangency point on the efficient frontier, the other does not
• E) All of the above

Analyze the impact of output changes on different types of costs.

Understand the significance of economies of scale on long-run average cost.

Differentiate between total cost, variable cost, and fixed cost within the context of production.

Recognize the role of prospective sales levels in a firm's operational decisions.

---

Definitions:

Specific Identification

An inventory costing method that tracks the actual cost of each individual item in inventory and assigns this cost to the goods sold.

FIFO Assumption

The First-In, First-Out method is an accounting assumption used to manage inventory and cost of goods sold, assuming the first items placed into inventory are sold first.

Subsidiary Shares

Shares owned by a parent company in a subsidiary, representing a controlling interest in that subsidiary.

Common Shares

Shares of stock representing ownership in a company, giving holders voting rights and a share in the company’s profits through dividends.