An Investor Prefers to Invest in Companies That Have High

question 12

Multiple Choice

An investor prefers to invest in companies that have high fixed costs. How can this be accomplished if the investor also requires a portfolio beta of 1.0?

• A) Invest 50% in cyclical stocks and 50% in firms with high fixed costs
• B) Invest 50% in a market index fund and 50% in firms with high fixed costs
• C) Invest equally in cyclical stocks, stocks of high-fixed-cost firms, and U.S. Treasury bills
• D)Invest a portion of the portfolio in U.S. Treasury securities

Understand the significance of company towns in labor history.

Analyze trends in labor union membership over time, including specific decades of growth.

Understand how labor unions have evolved in the context of the labor force and their strategies for bargaining.

Compare labor union dynamics in the United States with those in other countries.

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Definitions:

Maximizing

Seeking to make as large as possible; in economics, often involves actions like profit maximization or utility maximization.

Daisy

A common name for a variety of flowering plants in the family Asteraceae, known for their simple yet appealing appearance.

Total Utility

The complete gratification or advantage gained from the consumption of a specific amount of a product or service.

Marginal Utility

The extra pleasure or benefit a consumer gets from consuming an additional unit of a product or service.