What Do You Need to Know to Calculate the Breakeven

question 131

Multiple Choice

What do you need to know to calculate the breakeven point for a product?

• A) the total number of units that have been sold
• B) the current demand for the product and the potential supply in units
• C) the total cost, marginal cost, and average variable cost of each unit
• D) the revenues and expenses attributable to each unit

Understand the basics of Arbitrage Pricing Theory (APT) and its assumptions.

Calculate the expected return on portfolios and individual stocks under APT.

Distinguish between systematic and nonsystematic risk within the context of APT.

Apply the concept of arbitrage to identify risk-free profit opportunities.