The Investment Strategy That Requires the Percentage of Dollars Invested

question 134

Multiple Choice

The investment strategy that requires the percentage of dollars invested in stocks,bonds,and cash to remain fixed over a long period of time is called

• A)the buy-and-hold approach.
• B)dollar-cost averaging.
• C)asset allocation.
• D)portfolio diversification.

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Definitions:

Opportunity Cost

The cost of foregoing the next most desirable choice when a decision is made.

Out-of-pocket Cost

Direct payments made by individuals for goods or services, not reimbursed by insurance or other means.

Marginal Cost

Marginal Cost is the cost incurred by producing one more unit of a product or service.

Marginal Cost

The additional cost incurred in the production of one more unit of a good or service, a critical concept in economic theory related to the allocation of resources.