Which One of the Following Is the Best Example of Two

question 45

Multiple Choice

Which one of the following is the best example of two mutually exclusive projects?

• A)planning to build a warehouse and a retail outlet side by side.
• B)buying sufficient equipment to manufacture both desks and chairs simultaneously.
• C)using an empty warehouse for storage or renting it entirely out to another firm.
• D)using the company sales force to promote sales of both shoes and socks.
• E)buying both inventory and fixed assets using funds from the same bond issue.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points around their mean, commonly used in finance to assess the risk or volatility of an investment.

Risky Asset

An asset that has a significant degree of risk associated with it, offering the potential for higher returns in exchange for the increased risk.

Standard Deviation

A statistic that measures the dispersion of a dataset relative to its mean and is used in finance to gauge the amount of historical volatility of an investment.

Risk-Free Asset

An investment that is expected to return its principal and interest with near certainty, such as government bonds from stable countries.