Which of the Following Statements Is/are True

question 24

Multiple Choice

Which of the following statements is/are true?

• A)Both APT and CAPM argue that expected excess return must be proportional to the beta(s).
• B)APT and CAPM are the only approaches to measure expected returns in risky assets.
• C)Both CAPM and APT are risk-based models.
• D)Both A and B.
• E)Both A and C.

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Definitions:

Customer Service Level

A measure of the quality of service provided to customers, often evaluated through metrics like response time, satisfaction rates, and resolution effectiveness.

Lot Size

The quantity of units produced or purchased in a single batch or order, affecting production costs and inventory levels.

Cost of Overstocking

The expenses associated with holding excessive inventory, such as storage costs, insurance, and potential obsolescence.

Cost of Understocking

The financial losses and opportunity costs incurred from not having sufficient inventory to meet demand, including lost sales and customer dissatisfaction.