Working capital management includes which one of the following?
a. determining which customers will be granted credit
b. deciding which new projects to accept
c. deciding whether to purchase a new machine or fix a currently owned machine
d. determining how many new shares of stock should be issued

B

Explanation:

Working Capital Management has a significant role to carry out in the achievement of any business undertaking. working capital Management helps in ensuring  that funds are  put into  profitable uses. working capital management is a source of finance used in investing in new projects or existing project.

I. Percentage of the portfolio invested in each individual security.

II. Projected states of the economy.

III. The performance of each security given various economic states.

IV. Probability of occurrence for each state of the economy.

Explanation: The expected return on a portfolio is the amount of revenue or income expected to be generated from the investment made on a portfolio( which is a group of financial assets like Stocks and non financial assets like Art

works etc).

THE EXPECTED RATE OF RETURN IS AFFECTED BY BOTH PERCENTAGE OF THE PORTFOLIO INVESTED IN EACH SECURITY,

THE PROJECTED OR FORCASTED STATE OF THE ECONOMY,

THE PERFORMANCE OF EACH SECURITY CONSIDERING DIFFERENT SITUATIONS,

THE PROBABILITY OF OCCURRENCE FOR EACH STATE OF THE ECONOMY ETC.