A Company Has Three Products (X, Y, and Z) That

question 158

Multiple Choice

A company has three products (X, Y, and Z) that it sells, packs, and ships to its customers. Because the products have different sizes they also have different packing and shipping costs so we will use a new measure-a packing/shipping unit. Because Product Y is the smallest of the three products, we will assign it a value of 1 packing/shipping unit. Product X is twice as big as Product Y and Product Z is four times as big as Product Y. If, on a monthly basis, this company sells an average of 1,500 units of Product X, 800 units of Product Y, and 60 units of Product Z, how many packing/shipping units should it allocate to Product Z per month (to the nearest whole number) ?

• A) 240
• B) 424
• C) 620
• D) 800
• E) 3,000

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Definitions:

Portfolio's Beta

A measure of the volatility, or systemic risk, of a portfolio in comparison to the market as a whole.

Standard Deviation

A measure of the dispersion or variation in a distribution or set of data, widely used in statistics to gauge the volatility of financial returns.

Equally-weighted Portfolio

An investment portfolio in which all assets are allocated the same proportion of total investment.

Total Risk

The complete range of risk associated with an investment, including both systematic and unsystematic risk.