Marginal Cost Refers to the Costs Of

question 65

Multiple Choice

Marginal cost refers to the costs of:

• A) switching to a new technology.
• B) adhering to technical standards.
• C) producing one extra unit of product.
• D) product promotions.
• E) licensing new technology.

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Definitions:

Benchmark Portfolio

Portfolio against which a manager is to be evaluated.

Well-Diversified

Refers to an investment portfolio that contains a wide variety of assets to minimize risk.

SML

The Security Market Line, a graphical representation of the expected return of investments as a function of their risk, as described by the Capital Asset Pricing Model.

Equally-Weighted Portfolio

An investment strategy where each asset in a portfolio is allocated the same percentage of total investment capital.