Practical Capacity

question 61

Multiple Choice

Practical capacity:

• A)cannot be altered unless there is a major plant expansion.
• B)may increase over time due to improvements in plant layout.
• C)may decrease over time due to efficiencies offered by new technologies.
• D)Both A and B are correct.

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Definitions:

Efficient Markets Hypothesis

A theory that asserts that financial markets are "informationally efficient", meaning that prices of securities fully reflect all available information at any point in time.

EMH

Efficient Market Hypothesis, a theory that suggests all available information is already reflected in stock prices, hence making it difficult to achieve consistently higher returns.

Geometric Average

The geometric average is a method of calculating the mean that mitigates the impact of extreme values in a data set, commonly used in calculating investment returns.

Historical Record

Documentation or an account of past events, actions, or operations, serving as evidence or information about previous occurrences.