One Characteristic of Mid-Cap Stocks Is That They

question 46

Multiple Choice

One characteristic of mid-cap stocks is that they

• A) are generally new firms with high growth potential.
• B) tend to be highly volatile.
• C) are fairly good-sized companies that offer attractive return opportunities.
• D) are traded primarily through pink sheet bids.

---

Definitions:

Fixed Cost

Costs that do not vary with the production volume or level of services provided, such as rent, salaries, and insurance.

Salary

Salary refers to a fixed regular payment, typically paid on a monthly or biweekly basis but often expressed as an annual sum, made by an employer to an employee.

Incremental Manufacturing Cost

The additional cost incurred to produce an extra unit of a product, reflecting only those costs that directly change with the level of production.

Production

Production involves the processes and methods used to transform raw materials or components into finished goods or services.