Only Capital Gains That Have Been Realized Should Be Included

question 93

True/False

Only capital gains that have been realized should be included in the measurement of a portfolio's return over a given period of time.

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Definitions:

Effective Capacity

The capacity a firm can expect to achieve, given its product mix, methods of scheduling, maintenance, and standards of quality.

Operating Constraints

Limitations or restrictions that affect the performance or output of a process or system.

Maximum Output

The highest level of production that a company can sustain with the current resources and technologies.

Capacity

The throughput, or number of units a facility can hold, receive, store, or produce in a period of time.