Dakota Rearranges Her Portfolio So That It Has a Higher

question 381

Multiple Choice

Dakota rearranges her portfolio so that it has a higher average return. In doing this rearranging, she

• A)raised both firm-specific risk and market risk.
• B)raised firm-specific risk, but not market risk.
• C)raised market risk, but not firm-specific risk.
• D)None of the above is correct.

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, like labor or capital.

Wage Rate

The amount of compensation paid per unit of time to an employee or worker for their services.

Employment

The state of having paid work or the total number of people who are employed within a specific economy.

Wage Bill

The total amount of money paid by employers to their employees as wages for a specified period.