Table 8.1 -If You Were to Create a Portfolio Designed to Reduce

question 117

Multiple Choice

Table 8.1
-If you were to create a portfolio designed to reduce risk by investing equal proportions in each of two different assets, which portfolio would you recommend? (See Table 8.1)

• A) Assets A and B
• B) Assets A and C
• C) none of the available combinations
• D) cannot be determined

---

Definitions:

Profit-Maximizing

A strategy or goal aimed at achieving the highest possible profit through adjusting production levels, prices, or other factors.

Marginal Revenue

Refers to the additional income generated from selling one more unit of a good or service.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a good or service.

Economic Profit

The discrepancy between gross revenue and comprehensive costs, inclusive of both apparent and implied expenses.