A Type of Production Function That Includes Linear Production Functions

question 103

Multiple Choice

A type of production function that includes linear production functions, fixed-proportions production functions, and Cobb-Douglas production functions as special cases is:

• A)Cobb-Douglas production function
• B)Constant elasticity of substitution (CES)production function
• C)Fixed proportions production functions
• D)Linear production functions

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Definitions:

Abnormal Return

Abnormal return is the difference between the actual return of a security and its expected return, based on risk and market performance, indicating performance indicative of events or conditions unique to that security.

Bonds

A type of fixed-income investment where an investor loans money to an entity (corporate or governmental) which borrows the funds for a defined period at a variable or fixed interest rate.

Asset Allocation

The strategy of distributing investments among various classes of assets to manage risk and enhance returns.

Abnormal Return

Abnormal Return is the difference in the actual return of a security over a set period of time from its expected return based on the market or model prediction.