Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: Asset A: Expected return = 10% & SD = 20%
Asset B: Expected return = 15% & SD = 27%

An investor with a risk aversion of A = 3 would find that on a risk return basis.

a. only Asset A is acceptable
b. only Asset B is acceptable
c. neither Asset A nor Asset B is acceptable
d. both Asset A and Asset B are acceptable

2. high-glow currently produces 1,000 bicycles per month. the following per unit data apply for sales to regular customers: direct materials $50 direct manufacturing labor 5 variable manufacturing overhead 14 fixed manufacturing overhead 10 total manufacturing costs $79 the plant is experiencing demand shortage and is considering reducing production to 800 bicycles. what is the per unit cost of producing 800 bicycles? a) $79 per unit b) $81.50 per unit c) $74 per unit d) $69 per unit

Ashop owner uses a reorder point approach to restocking a certain raw material. lead time is six days. usage of the material during lead time is normally distributed with a mean of 42 pounds and a standard deviation of four pounds. when should the raw material be reordered if the acceptable risk of a stockout is 3 percent?

Lucy is catering an important luncheon and wants to make sure her bisque has the perfect consistency. for her bisque to turn out right, it should have the consistency of a. cold heavy cream. b. warm milk. c. foie gras. d. thick oatmeal.