Risk

question 102

Multiple Choice

Risk

• A)can be reduced by placing a large number of small bets rather than a small number of large bets.
• B)can be reduced by increasing the number of stocks in a portfolio.
• C)Both A and B are correct.
• D)Neither A nor B are correct.

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Definitions:

Economic Costs

The total expenses incurred in producing a good or service, including opportunity costs.

Total Revenue

The overall amount of money earned by a business from the sale of its goods or services, calculated as the product of price times quantity sold.

Economic Profits

Profits exceeding the opportunity costs of a firm, representing earnings beyond the breakeven point.

Economic Costs

The total value of all resources used to produce a good or service, including both explicit and implicit costs.