________ Have Historically Earned ________ Returns Than the Market Portfolio

question 29

Multiple Choice

________ have historically earned ________ returns than the market portfolio.

• A) Small stocks; higher average
• B) Big stocks; higher average
• C) Small stocks; lower average
• D) Big stocks; lower average

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Definitions:

Utilization

The extent to which a resource, such as equipment, space, or labor, is being used effectively and efficiently.

Excess Capacity

The situation in which a company can produce more products or services than currently demanded by the market.

High Fixed Costs

A financial condition where a business or operation has a high proportion of expenses that do not vary with the volume of production or sales.

Low Variable Costs

Operating conditions where costs that vary with production levels, like materials and labor, are minimal.