Why Should an Investor Consider Diversification and Asset Allocation

question 109

Multiple Choice

Why should an investor consider diversification and asset allocation?

• A) To offset capital gains
• B) To achieve desired risk-return balance
• C) To increase total returns
• D) To achieve higher dividend yields
• E) To improve price-appreciation values

Recognize the importance of quality control costs in a lean environment.

Identify the application of lean practices to service industries and administrative processes.

Understand the principles and objectives of lean manufacturing.

Recognize the differences between lean and traditional manufacturing environments.

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Definitions:

Expected Marginal Benefit

The additional benefit perceived by a consumer or producer from consuming or producing one more unit of a good or service.

Expected Marginal Cost

Refers to the anticipated increase in cost for producing one additional unit of a good or service.

Macroeconomics

The study of the economic behavior of entire economies, as measured, for example, by total production and employment.

Chinese Economy

The economy of China, characterized by its large size, rapid growth, and transition from a centrally planned economy to a more market-oriented system.