The Marginal-Cost Curve Intersects the Average-Fixed-Cost Curve at the Minimum

question 89

True/False

The marginal-cost curve intersects the average-fixed-cost curve at the minimum of marginal cost.

---

Definitions:

Sharpe Measure

A calculation used to understand the return of an investment compared to its risk, defined by the difference between the returns of the investment and the risk-free return, divided by the standard deviation of the investment returns.

Information Ratio

Ratio of alpha to the standard deviation of diversifiable risk.

Active Portfolio

A portfolio management strategy where an investment manager makes specific investments with the goal of outperforming an investment benchmark index.

Nonsystematic Variance

The portion of an investment's variance that is due to factors specific to the individual investment, rather than factors affecting the entire market.