The Value of Real Assets Moves Closely with the Value

question 7

True/False

The value of real assets moves closely with the value of financial assets, and therefore they provide effective portfolio diversification.

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Definitions:

Variable Costs

Expenses that change in proportion to the production or sales figures.

Per Unit

A measure or cost expressed per single item or quantity of a product or service.

Cost Behaviour

The way in which costs change in relation to alterations in an organization's level of activity.

Relevant Range

The range of activity within which the assumptions about fixed costs and variable cost behavior hold true.