The Fill Rate ______

question 75

Multiple Choice

The fill rate ______.

• A)is the percentage of customer orders that can be satisfied from inventory in stock
• B)is inversely related to effectiveness of inventory management
• C)is the product of the stock-out rate and rate at which customers place orders
• D)is lower during periods of seasonal demand

---

Definitions:

Risk Premium

The extra return above the risk-free rate that investors demand as compensation for the risk of an investment.

Systematic Risk

The risk inherent to the entire market or market segment, unavoidable through diversification.

Security Market Line

A line that represents the relationship between the risk of an investment and its expected return, based on the capital asset pricing model (CAPM).

Risk-Free Rate

The theoretical rate of return on an investment with no risk of financial loss, often represented by government bonds.