The Best Definition of a Reorder Point Is

question 48

Multiple Choice

The best definition of a reorder point is

• A)the optimal interval between orders with order quantity fixed.
• B)the stock-on-hand level at which successive new orders must be placed.
• C)the optimal order size when the interval between orders is fixed.
• D)the trigger for expediting an order for more stock.

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Definitions:

Average Return

Average return is the arithmetic mean of a series of returns generated over a period, used to gauge the historical performance of an investment or portfolio.

Canadian Small Stocks

Canadian small stocks refer to shares of small-cap companies based in Canada, representing firms with smaller market capitalization in the Canadian stock market.

Risk Premium

The additional return required by investors for taking on a higher risk compared to a risk-free investment.

Risky Asset

An asset that carries a significant possibility of losing some or all of its investment value.