The Risk That Remains in a Stock Portfolio After Efforts

question 46

True/False

The risk that remains in a stock portfolio after efforts to diversify is known as unique risk.

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Definitions:

Fixed Costs

Costs that do not vary with the level of output or sales in the short term, such as rent, salaries, or loan payments.

Long Run

A period of time in economics in which all factors of production and costs are variable, allowing all inputs to be adjusted.

Output

The total amount of goods or services produced by a company, industry, or economy within a specified period.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a firm in producing and selling a quantity of a good or service.