Use the Table for the Question(s)below

question 54

Multiple Choice

Use the table for the question(s) below.
Consider the following covariances between securities:
-Suppose you have $10,000 in cash to invest.You decide to sell short $5000 worth of Kinston stock and invest the proceeds from your short sale,plus your $10,000 into one-year U.S.treasury bills earning 5%.At the end of the year,you decide to liquidate your portfolio.Kinston Industries has the following realized returns:
The return on your portfolio is closest to:

• A)-0.5%
• B)13.5%
• C)-2.5%
• D)14.5%

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Definitions:

Production Schedule

A plan that outlines the timing and sequence of manufacturing processes required to produce a product.

Inventory Control System

A system used by businesses to manage their inventory levels, ensuring they have the right products in the right quantity for sale, at the right time.

Inventory Period

The average time it takes for a company to convert its inventory into sales.