Excom Fiberoptics Is Bidding on Contracts to Sell Micro Test

question 22

Multiple Choice

Excom Fiberoptics is bidding on contracts to sell micro test tubes for biotechnology research. in sets of 1,000 tubes. Fixed costs including depreciation associated with the project are $2,000,000, variable cost per set is $16. Excom expects to sell 250,000 sets. What is the minimum price it can charge and reach the accounting break-even point?

• A) $8
• B) $12
• C) $24
• D) $20

Understand the fundamental principles of the Capital Asset Pricing Model (CAPM).

Identify the role of systematic and unsystematic risk in CAPM.

Determine the expected rate of return on securities using CAPM.

Explain the significance of beta in measuring a security's market risk.

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Definitions:

Real Events

Actual occurrences or happenings in the physical world, as opposed to imagined or theoretical situations.

Curve Of Forgetting

A graph showing a distinct pattern in which forgetting is very fast within the first hour after learning a list and then tapers off gradually.

Ebbinghaus

A psychologist known for his research on memory and the forgetting curve, the decline of memory retention over time.

Retrieval Period

The timeframe during which a memory or piece of information is recalled or retrieved from the storage after learning.