A Locked-In Cost Is A(n) ________

question 169

Multiple Choice

A locked-in cost is a(n) ________.

• A) opportunity cost that is fixed in the short run
• B) cost that can be changed in the short run
• C) cost that has not yet been incurred, but based on decisions that have already been made, will be incurred in the future
• D) cost that has been incurred, but based on decisions that have already been made, will be not incurred in the future

---

Definitions:

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of numerical values, often used to assess the risk associated with a particular investment.

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government bonds from stable countries.

Perfectly Negatively Correlated

Describes two variables that move in opposite directions; if one increases, the other decreases.

Global Minimum Variance Portfolio

An investment portfolio that is designed to have the lowest possible risk (variance) for the expected return, part of modern portfolio theory.