As Long as a Mutual Fund Is Diversified with More

question 67

True/False

As long as a mutual fund is diversified with more than 60 different investments,further diversification is not recommended.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product, a key concept in economic theory that helps firms optimize production and pricing strategies.

Average Product

The output produced per unit of a factor of production, calculated by dividing total product by the quantity of the input used in production.

Marginal Product

The additional output resulting from the use of one more unit of a factor of production, holding other factors constant.

Factor Demand

The demand for productive resources (like labor, land, and capital) that businesses need to produce goods and services.