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You are reviewing the financial statements of several major retailers. One company has a relatively high asset utilisation ratio and a relatively low profit margin.

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You are reviewing the financial statements of several major retailers. One company has a relatively high asset utilisation ratio and a relatively low profit margin. How should this be interpreted? A B D The company has a relatively high return on capital employed. The company has a relatively low return on capital employed. The company sets high prices in order to maximise profit. The company sets low prices in order to increase sales volume. [2] What is implied by a beta of zero on a potential investment? A B The investment is high risk. The investment is risk free. The investment will make a diversified portfolio less sensitive to movements on the market. The investment will make a diversified portfolio more sensitive to movements on the market. [2] D

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