A Low Stockturn Rate

question 143

Multiple Choice

A low stockturn rate

• A) is extremely good for profits.
• B) decreases inventory carrying cost.
• C) ties up working capital.
• D) is usually linked with very low markups.
• E) is typical of fresh fruits and vegetables.

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market, indicating the stock's risk profile.

Systematic Risk

A type of risk that is unavoidable and impacts the whole market or a particular sector, often called market risk or non-diversifiable risk.

Unsystematic Risk

The risk inherent to a specific company or industry, which can be mitigated through diversification of an investment portfolio.

Political Risk

The risk that an investment's returns could suffer due to political changes or instability in a country, which can affect the business environment and profitability.