In This Age of Increasing Specialization, Low Communication Cost, and Fast

question 37

True/False

In this age of increasing specialization, low communication cost, and fast transportation, companies are making more and buying less.

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Definitions:

Portfolio Diversification

A risk management technique that mixes a wide variety of investments within a portfolio.

S&P/TSX 60 Index

A stock market index of 60 large companies listed on the Toronto Stock Exchange, representing leading sectors in Canada.

Alcan

Alcan was a Canadian mining company and manufacturer of aluminum products, which became part of Rio Tinto Alcan after its acquisition.

Systematic Risk

The inherent risk associated with the entire financial system or market, which cannot be eliminated through diversification.