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Why Is It Possible That a Raw Material Such as Glue

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Why is it possible that a raw material such as glue might be considered as an indirect material for one furniture manufacturer and as a direct material for another furniture manufacture?


Definitions:

Market Portfolio

A portfolio consisting of all assets available in the market, with each asset weighted according to its market capitalization.

Risk-free Rate

A hypothetical yield of an investment that is considered to have no financial risk, usually mirrored by the returns on government bonds.

Abnormal Return

The difference between the actual return of an investment and the expected return given its risk and the market's performance.

Advisory Service

A service provided by financial advisors or professionals offering expert advice on investment, planning, and managing finances.

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