Andrew Carnegie Made His Fortune with the Help of the Bessemer

question 45

Multiple Choice

Andrew Carnegie made his fortune with the help of the Bessemer converter, which:

• A)refined crude oil into gasoline, diesel, and lubricants.
• B)employed the assembly line technique for rapid manufacturing processes.
• C)identified large coal deposits as far as 2,000 feet below the ground.
• D)transformed large quantities of iron ore into steel by using extremely hot air.
• E)could roll up to 200 cigarettes in less than a minute.

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Definitions:

Asset Allocation

The process of spreading investments among various categories of assets (e.g., stocks, bonds, real estate) to optimize risk and return.

Risk Tolerance

The degree of variability in investment returns that an investor is willing to withstand.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, including the balance sheet, income statement, and cash flow statement.

Expected Return

The mean of the probability distribution of possible returns for an investment, taking into account all known risks and opportunities.