Four Strategies of Portfolio Management for Long-Term Investors Are Portfolio

question 71

Multiple Choice

Four strategies of portfolio management for long-term investors are portfolio diversification,asset allocation,buy-and-hold,and

• A)dollar-cost averaging.
• B)real return on investment.
• C)market risk.
• D)leverage.

Explain the role of derived demand in the context of labor and capital as factors of production.

Understand the fundamental concept of derived demand in relation to resources.

Distinguish between the marginal revenue product (MRP) of perfect and imperfect competitors as output changes.

Identify the factors influencing a firm's demand for resources.

---

Definitions:

Investment in Equipment

Capital expenditure on physical assets like machinery and equipment intended to be used in the production of goods or services.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in consistent annual amounts.

Remodelling

The process of updating or altering the structure, layout, or appearance of an existing building or space.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in the context of evaluating investments or projects.