If Smart Touch Learning Increases Its Production of Tablet Computers,what

question 242

Multiple Choice

If Smart Touch Learning increases its production of tablet computers,what will be the effects on the variable and fixed costs per tablet?

• A) variable costs per tablet decrease, fixed costs per tablet increase
• B) variable costs per tablet increase, fixed costs per tablet is constant
• C) variable costs per tablet increase, fixed costs per tablet decrease
• D) variable costs per tablet is constant, fixed costs per tablet decrease

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, not reducible through diversification.

Security Market Line

A line on a chart that displays the relationship between risk and the expected return of the market portfolio. It serves as a graphical representation of the Capital Asset Pricing Model (CAPM).

Beta Coefficient

A framework for quantifying the variability, or orderly risk, of a security or investment compilation when juxtaposed with the general market.

Risk Premium

The additional return an investor demands for choosing a risky investment over a risk-free option, serving as compensation for the additional risk.