To Find the Cost of a Portion

question 16

Multiple Choice

To find the cost of a portion:

• A) Price per pound * A.P. (as purchased) amount purchased = Total cost.
• B) Price per pound - A.P. (as purchased) amount purchased = Total cost.
• C) Price per pound + A.P. (as purchased) amount purchased = Total cost.
• D) Price per pound ÷ A.P. (as purchased) amount purchased = Total cost.

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Definitions:

Required Rate of Return

The minimum expected yield by investors to compensate for the risk of holding a particular investment.

Beta

An indicator of how much the risk of a security or a portfolio, known as systematic risk, fluctuates in relation to the overall market.

Expected Rate of Return

This refers to the anticipated gain or loss of an investment, expressed as a percentage of the investment's initial cost.

Probability

A measure of the likelihood that an event will occur, quantified as a number between 0 and 1.