The Variance of an Investment Opportunity

question 89

Multiple Choice

The variance of an investment opportunity:

• A) cannot be negative.
• B) has the same unit of measure as the variable from which it is derived.
• C) is a measure of central tendency.
• D) is unrelated to the standard deviation.

---

Definitions:

Marginal Product

The additional output produced as a result of using one more unit of a particular input, keeping other inputs constant.

Total Product

The total quantity of output produced by a firm from a given quantity of inputs during a specific period of time.

Fixed Cost

Any cost that in total does not change when the firm changes its output.

Firm's Output

The total quantity of goods or services produced by a company within a specified period.