Which of the Following Measures or Concepts Are Deliberately Used

question 44

Multiple Choice

Which of the following measures or concepts are deliberately used by modern portfolio theory?
I. beta
II. inter industry diversification
III. efficient frontier
IV. correlation

• A) II and III only
• B) I and IV only
• C) I, III and IV only
• D) I, II, III and IV

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Definitions:

Equilibrium

A state in a market where supply equals demand, with no external forces causing disruption, hence prices tend to stabilize.

Labor Supply

The cumulative hours that workforce members are eager and able to dedicate to work, provided a set wage.

Marginal Productivity

The additional output resulting from the use of one more unit of a production factor.

Wages

Payments made to labor for their services, typically expressed per hour or per annum.