The Characteristic Line for This Stock Is Rstock = ___

question 28

Multiple Choice

The characteristic line for this stock is Rstock = ___ + ___ Rmarket.

• A) 0.35, 0.12
• B) 4.05, 1.32
• C) 15.44, 0.97
• D) 0.26, 1.36

---

Definitions:

Per Unit Basis

A method of cost allocation or measurement that divides a total by the number of units to find the cost per unit.

Fixed Production Costs

Manufacturing costs that remain constant regardless of the level of production, such as rent and salaries of permanent staff.

Per Unit

A term that describes costs or revenues on a single unit basis.

Variable Costs

Expenses that directly fluctuate in proportion to the production or service activity level.