Author Question: The graph of the Capital Asset Pricing Model (CAPM) that relates the beta of a stock to its required ... (Read 56 times)

jwb375 · **on:** Jul 10, 2018

The graph of the Capital Asset Pricing Model (CAPM) that relates the beta of a stock to its required return is called the

A) characteristic line.
B) risk/return profile.
C) line of least resistance.
D) capital market line.
E) security market line.

Question 2

Brett's Gift Box estimates that it will sell 30,000 porcelain figurines next year. Because porcelain
figurines are so easily damaged, the average per unit carrying cost of the figurines is 25. The per
order cost of ordering is 800.

Assume that Brett wants a safety stock of 75 figurines. If Brett
reorders the figurines based on the economic order quantity, what is Brett's average inventory of
porcelain figurines?
A) 768 B) 700 C) 628 D) 854