Which of the Following Is NOT a Factor of Why

question 49

Multiple Choice

Which of the following is NOT a factor of why it is often difficult to determine if a fire was arson?

• A)There are usually too many witnesses to the crime.
• B)Physical evidence is difficult to locate.
• C)It is difficult to determine the fire's point of origin.
• D)The victim of the fire often ends up being the perpetrator of the crime.

Understand the basic concepts of fixed, variable, and total costs in economic decision-making.

Distinguish between sunk costs and relevant costs for decision-making.

Apply the concept of opportunity cost accurately in various scenarios.

Recognize the differences between accounting costs and economic costs.

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Definitions:

Expected Return

The probability-weighted average of the possible outcomes.

Risk Premium

The extra return above the risk-free rate that investors require as compensation for the risk of an investment.

Alpha

In investing, alpha is the measure of an investment's return relative to a benchmark index's performance, representing the value that a portfolio manager adds or subtracts from a fund's return.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates greater volatility than the market.