Which of the Following Is a Traditional Cost Objective in a Negotiation

question 51

Multiple Choice

Which of the following is a traditional cost objective in a negotiation?

• A) Payment terms (including discount provisions)
• B) F.O.B. point
• C) General terms and conditions
• D) Tooling expense
• E) Details on how a service is to be performed

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Definitions:

Jensen Portfolio

A portfolio evaluated using Jensen's Alpha, which measures the excess return of the portfolio over the predicted return by the CAPM model for its level of risk.

Treynor Measures

Financial metrics used to assess the returns earned on a portfolio in excess of that which could have been earned on a risk-free investment, per each unit of market risk.

Sharpe Measure

A ratio developed by William F. Sharpe to measure risk-adjusted performance of an investment, calculating how much excess return you are receiving for the extra volatility that you endure for holding a riskier asset.

Dollar Weighted

A method of measuring investment returns which accounts for the size and timing of cash flows into and out of the portfolio.