Which of the Following Is $\textbf{ not}$

question 91

Multiple Choice

Which of the following is $\textbf{ not}$ a consequence of a sales budget developed by an overly optimistic marketing department?

• A)Too much inventory may be produced.
• B)Too much material will be ordered.
• C)The company will fail to achieve its budgeted income.
• D)All of these ans choices are consequences of a sales budget developed by an overly optimistic marketing department.

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Definitions:

Arbitrage Opportunity

A situation where a trader can make a profit without risk by simultaneously buying and selling the same or equivalent assets in different markets to exploit price differences.

Risk-free Rate

A theoretical return on an investment with zero risk of financial loss, often represented by government bonds.

Alpha

Alpha is a financial metric indicating the performance of an investment relative to a benchmark index, representing the extra value that a portfolio manager adds or subtracts from a fund's return.

Expected Rate of Return

The projected percentage return on an investment over a given period, factoring in all known variables.