A Portfolio of Shares Where Each Share Has a Large

question 54

True/False

A portfolio of shares where each share has a large component of independent risk benefits when such shares are held in a portfolio, because the independent risks are averaged out. This is also referred to as 'diversification of risks'.

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Definitions:

Minimum Efficient Scale

The smallest level of production at which a firm can achieve the lowest long-run average total cost.

Economic Costs

The total cost of choosing one action over another, comprising both the costs directly incurred and the opportunity costs forgone by not taking the alternative action.

Total Revenue

The total amount of money received by a company from its sales of goods or services before any expenses are subtracted.

Assistant's Salary

The compensation paid to an assistant, which typically includes wages or salaries for clerical, support, or administrative roles.