Use the Following Scenario to Answer the Following Questions

question 47

Multiple Choice

Use the following scenario to answer the following questions:
Raven and Drew produce baseballs and golf balls.Raven can produce six baseballs per hour or four golf balls per hour.Drew can produce three baseballs per hour or one golf ball per hour.
-Based on the scenario,which of the following is true?

• A) Raven has both an absolute and a comparative advantage in baseball production.
• B) Raven has both an absolute and a comparative advantage in golf ball production.
• C) Raven has neither an absolute nor a comparative advantage in baseball production.
• D) Raven has neither an absolute nor a comparative advantage in golf ball production.
• E) Drew has both an absolute and a comparative advantage in baseball production.

---

Definitions:

Market Risk

The risk of losses in investments due to market-wide phenomena, affecting all investments across the board.

CAPM Approach

A financial model used to determine the expected return on an investment, considering its risk relative to the market using the Capital Asset Pricing Model.

Shareholder Wealth

The value that shareholders gain from their investment in a company, measured by stock prices and dividends.

Project Risk

The uncertainty associated with achieving project objectives within defined constraints such as scope, time, and budget.