A Simple Performance Benchmark Is to Compare the Return of a Well

question 74

True/False

A simple performance benchmark is to compare the return of a well diversified portfolio of domestic shares to the S&P/ASX200 Index.

Comprehend the difference between elastic and inelastic demand.

Identify factors influencing elasticity of demand, including the availability of substitutes.

Understand the concept and significance of income elasticity of demand.

Grasp the concept of cross elasticity of demand and how it relates to substitutes and complements.

---

Definitions:

Domestic Corporation

Company that operates in the state where it is incorporated.

Alien Corporation

Firm incorporated in one nation and operating in another nation.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a claim on a portion of the company’s profits through dividends.

Voting Rights

The entitlement of shareholders or citizens to vote in company or public elections, respectively.