Spreading Risk Involves

question 95

Multiple Choice

Spreading risk involves:

• A) finding assets whose returns are perfectly negatively correlated.
• B) adding assets to a portfolio that move independently.
• C) investing in bonds and avoiding stocks during bad times.
• D) building a portfolio of assets whose returns move together.

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Definitions:

Multifactor Productivity

A measure of productivity that considers the output generated relative to multiple inputs used, like labor, capital, and materials.

Labour Hours

The total number of hours worked by all employees in a given period, often used to measure workforce productivity.

Labour Productivity

a measure of economic performance that calculates the amount of goods and services produced per hour worked by employees.

Multifactor Productivity

An indicator of economic efficiency that assesses the ratio of total goods and services output to the sum of inputs employed in their production.