Asset Allocation Is The

question 1

Multiple Choice

Asset allocation is the:

• A)selection of specific securities within a particular class or industry.
• B)division of a purchase price between a cash payment and a margin loan.
• C)division of a portfolio into short and long positions.
• D)distribution of investment funds among various broad asset classes.
• E)dividing of assets into those that are hypothecated and those that are not.

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Definitions:

Scarce Resource

A resource with limited availability in comparison to the desired use which exceeds its supply in an economic environment.

Technological Superiority

Having more advanced and efficient technology compared to competitors, often leading to a competitive advantage.

Economies Of Scale

Cost advantages that enterprises obtain due to their scale of operation, leading to cost per unit of output decreasing with increasing scale.

ATC

ATC, or Average Total Cost, is the total cost divided by the number of goods produced, reflecting the average cost of production per unit.