In a Particular Year, Lost Hope Mutual Fund Made the Following

question 10

Multiple Choice

In a particular year, Lost Hope Mutual Fund made the following investments in asset classes:
-The total extra return on the managed portfolio was __________.

• A) 1%
• B) 2%
• C) 3%
• D) 4%

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Definitions:

Relatively Elastic

Describes a situation where the quantity demanded or supplied of a good or service changes significantly due to a small change in price.

Relatively Inelastic

This term describes a situation where the demand for a good or service changes by a smaller percentage than the changes in price, indicating that consumers are less sensitive to price changes.

Total Revenue

The total income generated by a company from its business activities, calculated as the unit price multiplied by the number of units sold.

Kinked-demand Curve Model

An economic model that suggests prices in an oligopoly are stable because firms will match price decreases but not price increases by competitors.