You Can Reduce Your Risk by

question 4

Multiple Choice

You can reduce your risk by

• A) diversifying your investments.
• B) having a shorter time horizon.
• C) putting all of your investment in one successful company.
• D) Both A and B are correct.

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Definitions:

Marginal Cost

The cost added by producing one additional unit of a product or service, a crucial concept for decision-making in business and economics.

Variable Costs

Costs that vary directly with the level of production or output, such as raw materials and labour costs.

Variable Costs

Costs that change in proportion to the level of output or business activity, such as materials and labor directly involved in production.

Advertising Costs

Expenses incurred in promoting a product, service, or brand to potential customers.