Application of the Theory of Constraints Will Improve All of the Following

question 59

Multiple Choice

Application of the theory of constraints will improve all of the following EXCEPT

• A)net income.
• B)debt-to-equity ratio.
• C)cash flow.
• D)return on investment.

---

Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates greater volatility than the market, while a beta below 1 indicates less.

Risk-Free Rate

A hypothetic return rate on a risk-free investment, usually shown by the returns on government securities.

Expected Return

The weighted average of all possible returns from an investment, accounting for the likelihood of each outcome.

Standard Deviation

Standard Deviation measures the amount of variation or dispersion from the average, indicating the risk associated with a variable.