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

Identify the role of market segmentation (e.g., green market) in environmental marketing.

Appreciate the global perspective on environmentalism and sustainable practices.

Acknowledge the significance of social media and consumer engagement in promoting corporate social responsibility (CSR) and sustainability.

Recognize the complexities of measuring intelligence, including the role of genetics and the environment.

---

Definitions:

Green-Sensitive Cones

Photoreceptor cells in the retina that are most sensitive to green wavelengths of light, playing a key role in color vision.

Red-Sensitive Cones

Photoreceptor cells in the retina that are particularly responsive to red wavelengths of light, playing a critical role in color vision.

Normal Color Vision

The ability to perceive colors accurately and differentiate between them, based on normal functioning of the cone cells in the retina.

Critical Period

A specific time in development during which an organism is particularly sensitive to environmental influences, outside of which such learning is significantly more difficult or even impossible.