Balanced Funds Invest in a Proportionate Amount of Common and Preferred

question 140

True/False

Balanced funds invest in a proportionate amount of common and preferred stocks and bonds.

---

Definitions:

Marginal Cost

Marginal cost is the increase in total cost that arises from producing one additional unit of a product or service.

Optimal Quantity

The quantity that generates the highest possible total profit.

Economic Analysis

The systematic approach to determining the optimum use of scarce resources, involving comparison of two or more alternatives in achieving a specific objective under the given assumptions and constraints.

Marginal Benefit

The additional benefit obtained from consuming one more unit of a product or service.