Refer to the Figure Below,which Shows Marginal Benefits (MB)and Marginal

question 62

Multiple Choice

Refer to the figure below,which shows marginal benefits (MB) and marginal cost (MC) of activity A: If the decision maker is choosing 400 units of activity A,

• A)this level maximizes net benefits.
• B)the activity could be reduced by one unit and net benefits will increase by $10.
• C)the activity could be reduced by one unit and net benefits will rise by $25.
• D)the activity could be increased by one unit and net benefits will increase by $15.
• E)the activity could be reduced by one unit and net benefits would decrease by $10.

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Definitions:

Beta Coefficient

An indicator of how much a stock's price fluctuates in comparison to the general market, representing its risk relative to the market norm.

Treynor-Black Model

A portfolio optimization model that blends passive and active management strategies to try to achieve excess returns with an acceptable level of risk.

Alpha Coefficient

A measure of the performance on a risk-adjusted basis of an investment portfolio, indicating excess return over the benchmark.

Beta Coefficient

A measure of the volatility, or systematic risk, of a security or a portfolio compared to the market as a whole.