It Is Much Easier to Select Specific Stocks and Bonds

question 113

True/False

It is much easier to select specific stocks and bonds than it is to select an open-end mutual fund share.

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Definitions:

Opportunity Cost

is the loss of potential gain from other alternatives when one alternative is chosen.

Rational Decisions

Choices made by individuals that align with their own self-interest and are based on an evaluation of the costs and benefits of the action.

Marginal Costs

The extra financial burden of generating one additional unit of a good or service.

Marginal Benefits

The incremental satisfaction or advantage obtained from the consumption of an additional unit of a good or service.