One Year Many Customers' Machinery Wears Out and Needs to Be

question 128

Multiple Choice

One year many customers' machinery wears out and needs to be replaced. The following year no customers need new machinery. This is an example of ________ demand.

• A) inelastic
• B) fluctuating
• C) elastic
• D) consumer
• E) static

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Definitions:

Vanguard Index 500

A mutual fund that aims to mirror the performance of the S&P 500, managed by Vanguard.

Passive Investment

An investment strategy involving minimal buying and selling, aiming to benefit from long-term market returns with low fees.

Four-factor Model

A financial model that expands the three-factor model (market risk, size risk, and value risk) by adding a momentum factor to explain stock returns.

Fama and French Factors

Fama and French factors are three factors—market risk, size risk, and value risk—used in explaining portfolio returns beyond the market risk measured by beta.