Figure 14-5

question 130

Multiple Choice

Figure 14-5. On the graph, x represents risk and y represents return.
-Refer to Figure 14-5. Point A represents a situation in which

• A)all of a person's savings are allocated to a class of safe assets.
• B)the person knows with certainty that his or her return will be 3 percent.
• C)the standard deviation of the person's portfolio is zero.
• D)All of the above are correct.

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Definitions:

Operating Expenses

Costs necessary for a company to conduct its day-to-day operations, excluding the cost of goods sold (COGS).

Transfer Prices

Prices charged for the sale of goods or services between divisions within the same company, often used for cost allocation and performance evaluation.

Segments

Different parts or areas of a business or market that can be separately analyzed.

ROI

Return on Investment is a measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.