Which of the Following Is Generally Not Considered as a Barrier

question 74

Multiple Choice

Which of the following is generally not considered as a barrier to entry?

• A) Rapid market growth
• B) Sizable capital requirements and an array of regulatory requirements
• C) Strong buyer loyalty to existing brands
• D) Sizable economies of scale in production
• E) Difficulties in gaining access to technological know-how

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Definitions:

Global Minimum-Variance Portfolio

The Global Minimum-Variance Portfolio is an investment portfolio constructed to achieve the lowest possible level of risk (variance) for its expected return, using assets from around the world.

Perfectly Negatively Correlated

A relationship between two securities in which one's price moves in the opposite direction of the other's, resulting in a correlation coefficient of -1.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, often used in finance to quantify the risk of an investment.

Risk Aversion

The preference of investors to avoid risk, leading them to invest in safer securities with lower potential returns.