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liple Choice 2 points each,cte Elasticity of Demand is most applicable to which

ID: 2614208 • Letter: L

Question

liple Choice 2 points each,cte Elasticity of Demand is most applicable to which of Porter's Five 1. a. Threat of Substitutes b. Buyer Power c. Rivalry/Competition d. Barriers to Entry 2. The Capital Assets Pricing Model (CAPM) is used to: a. Deter mine the cash flow expected for a security or portfolio over a specified period of time. b. c. Determine the fair value of assets acquired through capital expenditures. De termine the expected systematic risk. return of a security or a portfolio taking into account the assets d. De termine the general market value of a security or portfolio regardless of risk. Using the CAPM theory, if the Volatility of a stock is twice as great as the market, the market return on stocks in general (using the S&P; 500 as a proxy) is 10%, and treasury bills are yielding 3. 296, what is the return that investors in that security can expect? a. 11% b. 1890 c. 20% d. 22% 4. Which of the following is not a depreciation method: a. Straight Line b. Double Declining Balance c. Units of Production d. Cost Recovery 5. Working Capital is: a. The amount by which cash exceeds current liabilities. b. The amount by which current assets exceed current liabilities. c. The total value of current assets and current liabilities. d. The difference between total assets and shareholder's equity

Explanation / Answer

1. Answer A.

Substitutes Product offers the same or similar function. If a Product has more substitute products, the demand for the product becomes more elastic.