Find out general account answer. Safety stock increases when:A) probability of a stock-out increases.B) average demand increases.C) delivery speed increases.D) demand fluctuations decrease.

The correct answer is:B) average demand increases. Explanation:Safety stock is additional inventory…

Answered: Safety stock increases when: A)…

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section17.4: Analyzing Financial Statements Using Financial Ratios

Problem 4AYU

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Similar questions

Assume that the risk-free rate remains constant, but the market risk premium declines. Which of the following is most likely to occur? a. The required return on a stock with beta = 1.0 will not change. b. The required return on a stock with beta > 1.0 will increase. c. The return on "the market" will increase. d. The return on "the market" will remain constant. e. The required return on a stock with a positive beta < 1.0 will decline.
Higher interest rates imply higher required rates of return, which is generally a negative for stock prices a. True b. False
1.Which of the following is assumed by the Black-Scholes-Merton model? A.The return from the stock in a short period of time is lognormal B.The stock price at a future time is lognormal C.The stock price at a future time is normal D.None of the above
The risk fora portfolio is decreased when the particular stocks tend to move up and down together. True or False True False
The wider the dispersion of returns on a stock, the:
In efficient markets, the rate of return on a stock should be: A. always greater than the risk-free rate B. Less than zero C. Related to the systemic risk of the stock D. Zero; no stock should earn a positive return
Market's required yield on preferred stock is actually the promised rate of return. Explain this statement.
Assume that security returns are generated by the single-index model, = : αj + BiRM + ei Ri where Ri is the excess return for security i and RM is the market's excess return. The risk-free rate is 4%. Suppose also that there are three securities A, B, and C, characterized by the following data: Security Bi E(Ri) o(ej) A 1.1 11% 24% B 1.3 13 C 1.5 15 a. If om = Security A Security B Security C 10 19 22%, calculate the variance of returns of securities A, B, and C. Variance
true or false
Which of the following is (are) correct regarding average returns? A The geometric mean is a better measure of an investor's effective return over several periods than the arithmetic mean. B The arithmetic mean is the average return for a series of returns and will always be less than or equal to the geometric mean. C Both a and b. D Neither a nor b.
According to the efficient market theory, whenever investors find that the required return of stock is less than the expected return of the stock, the investor will buy the stock. This will: a. drive the price up b. cause the market to crash c. drive the price down d. not affect the price
Which of the following statements are true if the efficient market hypothesis holds?a. It implies that future events can be forecast with perfect accuracy.b. It implies that prices reflect all available information.c. It implies that security prices change for no discernible reason.d. It implies that prices do not fluctuate.

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Safety stock increases when: A) probability of a stock-out increases. B) average demand increases. C) delivery speed increases. D) demand fluctuations decrease.