Examlex

Solved

Investment a and Investment B Both Have the Same Expected

question 124

True/False

Investment A and Investment B both have the same expected return,but Investment A is more risky than Investment B.In the technical jargon of modern portfolio theory,Investment A is said to "dominate" Investment B.


Definitions:

Absorption Costing

A costing technique that encompasses both direct and indirect expenses associated with the production in the product's cost.

Contribution Margin

The amount by which sales revenue exceeds variable costs of a product, indicating how much revenue contributes toward covering fixed costs and generating profit.

Production Efforts

The exertion of labor and use of resources by a company towards the manufacturing of goods.

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's operating performance.

Related Questions