THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION

question 73

Multiple Choice

THE NEXT QUESTIONS ARE BASED ON THE FOLLOWING INFORMATION:
A supermarket chain has 25 stores in the North,30 in the South,50 in the Midwest,and 35 in the West.Using a proportional allocation of a random sample of 30% of the outlets,the manager records the following means and standard deviations.

-Estimate the total sales for the corporation based on these estimates.

• A)15,484.39
• B)19,976.60
• C)28,778.85
• D)24,848.36

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Definitions:

SML

The Security Market Line (SML) is a line that represents the risk-return relationship of the market at a given time, as described in the Capital Asset Pricing Model (CAPM).

T-Bill Rate

The T-Bill rate is the yield on U.S. Treasury bills, a benchmark for short-term interest rates in the United States.

Portfolio Beta

A measure of the overall volatility or risk of an investment portfolio in relation to the market as a whole.

Beta

A measure of a stock's volatility in relation to the overall market, indicating its risk compared to the market average.