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Which of the Following Are the Two Primary Advantages of CAPM

question 68

Multiple Choice

Which of the following are the two primary advantages of CAPM?
I.Simplicity
II.Absence of estimation error
III.Applicability to both dividend and nondividend paying firms
IV.Explicit adjustment for risk


Definitions:

Raw Material Inventory

Materials that are usually purchased but have yet to enter the manufacturing process.

Safety Stock Computation

The calculation of a buffer quantity of inventory kept on hand to prevent stockouts, based on variability in demand and supply.

Standard Deviation

A statistical measure of the dispersion or variability within a data set, indicating how much individual values differ from the average.

Inventory Management

The practice of overseeing and controlling the ordering, storage, and use of components and finished products.

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