An Example of a Factor That Will Likely Perpetuate Production

question 71

Multiple Choice

An example of a factor that will likely perpetuate production is

• A) a natural resource like lumber or water power.
• B) plentiful labor.
• C) a mineral resource like gold or tin.
• D) all of the above.

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Definitions:

Active Portfolio Management

A strategy where managers make specific investments with the goal of outperforming an investment benchmark index.

Passive Strategy

An investment approach that involves holding a diversified portfolio to match the performance of a market index over time, minimizing buying and selling actions.

After-tax Holding-period Return

The return on an investment after accounting for taxes, over the period it was held, reflecting the true gain or loss.

Personal Trusts

Financial instruments in which assets are held by a trustee for the benefit of the trust's beneficiaries according to the terms of the trust agreement.