List and Briefly Discuss Three Measures That Can Be Taken

question 152

Essay

List and briefly discuss three measures that can be taken to maintain good controls over merchandise inventory.

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Definitions:

Diversification Benefits

The reduction in investment risk that is achievable by holding a variety of different investment instruments that have low correlation with each other.

Characteristic Line

A line generated in a statistical chart that shows the relationship between the returns on a security or portfolio and the returns on the overall market.

Market Index

A statistical measure that tracks the performance of a group of stocks, representing a portion of the overall market.

Correlation Coefficient

An analytical tool that determines the magnitude of association between the fluctuations of two interrelated variables.