Security Returns

question 8

Multiple Choice

Security returns

• A)are based on both macro events and firm-specific events.
• B)are based on firm-specific events only.
• C)are usually positively correlated with each other.
• D)A and B.
• E)A and C.

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Definitions:

Marginal Cost

The cost attached to the production of one additional unit of a good or service.

Competitive Market

A competitive market is one where there are many buyers and sellers so that no single buyer or seller can influence the price or terms of products.

Efficient Outcomes

Are results in which resources are allocated in the most effective manner, often relating to maximized welfare or minimized waste.

Demand Curves

Graphical representations showing the relationship between the price of a good and the quantity demanded by consumers at various price levels.