Investing in Coke and Pepsico Would Be an Example of

question 83

Multiple Choice

Investing in Coke and Pepsico would be an example of

• A) highly correlated stocks.
• B) investing in stocks that were not correlated.
• C) diversifying by investing in both rather than one or the other.
• D) investing in international growth stocks.

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Definitions:

Marginal Rate

A rate that indicates the change in a variable (such as cost, revenue, or tax) as its underlying factor changes incrementally.

Substitution

The action of replacing one good or service with another based on changes in relative prices, incomes, or preferences.

Indifference Curve

A graph showing different combinations of two goods that provide the same level of utility or satisfaction to a consumer.

Utility

In economics, a measure of satisfaction, usefulness or value that an individual gains from consuming goods and services.