Technology Funds Focus on Technology-Based Firms

question 137

Multiple Choice

Technology funds focus on technology-based firms. Which of the following statements regarding these firms is not true?

• A) Many of these firms are relatively young.
• B) They have a low degree of risk.
• C) They have potential for high returns.
• D) They do not have a consistent record of strong performance.

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Definitions:

Producer Surplus

The difference between the amount that producers are willing and able to sell a product for and the actual amount they do sell it for.

Demand Curve

A visual plot that illustrates the connection between the cost of a product and the amount of it buyers are prepared and capable of buying at different price levels.

Supply Curve

A visual chart that illustrates how the price of a product correlates with the amount of the product that sellers are prepared to offer.

Actual Price

The price at which goods are sold in the market, not necessarily equal to the listed or expected price.