Match Each Item with the Correct Statement Below

question 12

Multiple Choice

Match each item with the correct statement below.
-variable cost per unit

• A)horizontal-axis of CVP graph
• B)vertical-axis of CVP graph
• C)slope of revenue line
• D)slope of cost line
• E)point where the total revenue line and the total cost line intersect

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Definitions:

Capital Allocation Line

A graph that shows the risk-return trade-off of investable assets, indicating the most efficient portfolio possible given a certain level of risk.

Standard Deviation

Standard deviation quantifies the variation or spread of a set of numbers from its mean, highlighting the volatility or risk associated with a financial instrument or investment.

Risk-Free Asset

An investment guaranteed to return the original investment without any loss, typically associated with high-grade government securities.

Indifference Curve

In economics, a curve that represents different combinations of goods or services among which a consumer is indifferent, showing preferences.