Which One of These Probably Contributed the Least to the Dot.com

question 79

Multiple Choice

Which one of these probably contributed the least to the dot.com bubble?

• A) Investors putting too much weight on recent performance
• B) Investor risk aversion
• C) Investor overconfidence
• D)Professional managers desiring to outperform their competitors

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Definitions:

Variable Expenses

Costs that fluctuate with the level of output or sales, such as materials and labor.

Fixed Expenses

Fixed expenses are costs that do not fluctuate with changes in production level or sales volume, including lease payments and insurance.

Volume

The number of units of a product or service sold or produced.

CM Ratio

The CM Ratio, or Contribution Margin Ratio, is a financial metric that shows the proportion of sales revenue that exceeds variable costs, indicating the amount available to cover fixed costs and generate profit.