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Author Question: The purpose of work-in-process inventory is to ensure that machine failures and work stoppages in ... (Read 110 times)

rayancarla1

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on: Jul 10, 2018
The purpose of work-in-process inventory is to ensure that machine failures and work stoppages
  in one operation do not affect other operations.
 
  Indicate whether the statement is true or false

Question 2

Stock A B C D Expected Return 5 5 7 6 Standard Deviation 10 12 12 11 Which of the following statements is true?
 
  A) A is a better investment than B.
  B) B is a better investment than C.
  C) C is a better investment than D.
  D) D is a better investment than C.


Ksh22

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Reply #1 on: Jul 10, 2018
Answer to Question 1

TRUE

Answer to Question 2

Answer: A
Explanation: A) The only sure thing we know is that investment A is better than investment B because for the same return we get less risk. Investment B is not better than investment C because for the same risk, we get less return. We cannot say if investment C or investment D is better because that involves a personal judgment on the risk-return trade-off.


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