Which of the Following Makes This a True Statement: the Shape

question 104

Multiple Choice

Which of the following makes this a true statement: The shape of the efficient frontier implies that:

• A)diminishing returns apply to risk-taking in the investment world.
• B)increasing returns apply to risk-taking in the investment world.
• C)returns are not impacted by risk-taking in the investment world.
• D)None of these complete the sentence to make it true.

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Definitions:

Depletion Expense

an accounting and tax concept used to account for the reduction of a product's reserves, such as minerals, oil, and gas.

Salvage Value

The estimated resale or scrap value of an asset at the end of its useful life.

Depletion Expense

The allocation of the cost of natural resources over the period they are consumed or sold.

Mineral Deposit

A natural accumulation of minerals within the Earth that can be economically extracted and utilized.