Which of the Following Would Most Likely Lead to a Company

question 96

Multiple Choice

Which of the following would most likely lead to a company initiating a price increase?

• A) weakened economy
• B) possession of outdated merchandise
• C) excess capacity
• D) over-demand
• E) possession of defective merchandise

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Definitions:

Two-Asset Portfolio

A financial portfolio consisting of two different assets, aiming to diversify investment risks and returns.

Standard Deviation

A measure of the dispersion or spread of a set of numbers, indicating how much variation exists from the average.

Risky Asset

An investment that holds a degree of uncertainty regarding its returns or principal amount.

Non-Risky Asset

A financial asset with a guaranteed or highly predictable return rate, such as government bonds.