On a Diagram of a Production Possibilities Boundary,the Concept of Opportunity

question 55

Multiple Choice

On a diagram of a production possibilities boundary,the concept of opportunity cost is illustrated by the

• A)distance from the origin to the boundary.
• B)negative slope of the boundary.
• C)boundary being concave to the origin.
• D)unattainable points outside the boundary.
• E)area bounded by the two axes and the boundary.

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Definitions:

Hedge Fund Fees

The charges that hedge funds impose on their investors, typically comprising a management fee and a performance fee.

Carry

In finance, the cost or benefit associated with holding a financial position, such as the interest expense on borrowed funds or the yield earned on deposits.

AUM

Assets Under Management, representing the total market value of the investments a financial institution manages on behalf of clients.

Hedge Fund Fees

Charges associated with investing in a hedge fund, often including a management fee and a performance fee.