Which of the Following Considers the Size of the Company

question 70

Multiple Choice

Which of the following considers the size of the company and needs no adjustment for stock splits?

• A) Price weighting
• B) Capitalization weighting
• C) Equal weighting
• D) Base weighting

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Definitions:

Slope

A measure of the steepness, incline, or grade of a straight line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Capital

Resources, such as funds, equipment, and buildings, that are used in the production of goods and services.

Labor

Refers to the human effort, both physical and mental, used in the production of goods and services.

Isocost Line

A graph that shows all combinations of capital and labor that can be purchased for a given total cost.