Sharif's Portfolio Generated Returns of 12 Percent, 15 Percent, −15

question 46

Multiple Choice

Sharif's portfolio generated returns of 12 percent, 15 percent, −15 percent, 19 percent, and −12 percent over five years. What was his average return over this period?

• A) 19 percent
• B) 3.8 percent
• C) 17 percent
• D) 2.1 percent

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Definitions:

Lower Per Unit Costs

A reduction in the cost to produce a single unit of a product or service, usually achieved through economies of scale or technological advancements.

Division Of Labor

The allocation of different tasks to different people or entities based on specialization, contributing to efficiency in production.

Specialize

Refers to focusing on a specific area of study, work, or production to gain expertise and efficiency.

Production Possibilities

A concept in economics that describes the various combinations of goods and services that can be produced in an economy given its available resources and technology.