If the Return Increases as More Global Investments with Low

question 8

Multiple Choice

If the return increases as more global investments with low correlation are added to the market portfolio,the efficient frontier moves

• A) Up and right.
• B) Up and left.
• C) Down and right.
• D) Down and left.
• E) Up only.

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Definitions:

Break-even Sales

The amount of revenue from sales required to cover all fixed and variable costs of operating a business, resulting in no net profit or loss.

Variable Costs

Costs that change in proportion to the activity of a business.

Property Taxes

Taxes levied by local governments based on the assessed value of property, including land and buildings owned.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, indicating how much contributes to covering the fixed costs.