Use the Information Below to Answer the Following Question(s)

question 137

Multiple Choice

Use the information below to answer the following question(s) .
Franscioso Company sells several products. Information of average revenue and costs is as follows:

-The Franscioso Company contribution margin ratio is

• A) 1.102:1.
• B) 1.425:1.
• C) 0.637:1.
• D) 0.702:1.

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Definitions:

Beta Coefficient

A parameter for assessing the fickleness, or inherent market risk, of a security or a composite of investments compared to the overall market.

Risk-free Asset

An investment that is expected to return its original investment without any loss and with a certain rate of return. Typically, government bonds are considered close to risk-free.

Beta

Beta is a measure of a stock's volatility in relation to the overall market, indicating the stock's risk compared to the market risk.