Which of the Following Has the Assumptions of Absence of Personal

question 127

Multiple Choice

Which of the following has the assumptions of absence of personal taxes, single-period investment and riskless borrowing or lending?

• A) Modern Portfolio Theory
• B) Capital Asset Pricing Model
• C) Binomial Options Pricing Model
• D) Arbitrage Pricing Theory

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Definitions:

Production Budget

A financial plan that estimates the number of units to be produced in a future period, based on sales forecasts and inventory levels.

Sales Budget

A financial plan that estimates the expected revenues from sales over a specific period.

Budgeted Accounts Receivable

The forecasted amount of money owed to a business by its customers for goods or services provided on credit.

Credit Sales

Sales for which payment is not received at the time of sale but is expected to be paid at a later date.