Instruction 17-5
a Stock Portfolio Has the Following Returns Under

question 75

Multiple Choice

Instruction 17-5
A stock portfolio has the following returns under the market conditions listed below.
$$\begin{array} { l l l } \text { Market Condition } & \text { Probability } & \text { Return } \\\text { Bull } & 0.4 & \$ 200 \\\text { Stable } & 0.3 & \$ 100 \\\text { Bear } & 0.3 & \$ 100\end{array}$$
-Referring to Instruction 17-5,what is the coefficient of variation?

• A) 156.1%
• B) 88.8%
• C) 100%
• D) 90.3%

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Definitions:

Theory of Constraints

A management paradigm that focuses on identifying and addressing the most significant limiting factor (constraint) that hinders achieving a goal, and systematically improving that constraint until it is no longer the limiting factor.

Contribution Margin

Contribution margin is the amount by which a product's sales price exceeds its total variable costs, indicating how much contributes to covering fixed costs and generating profit.

Bottleneck Process

A bottleneck process is a stage in production that reduces the efficiency of the operation due to limited capacity, slowing down the overall process flow and impacting productivity.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services.