Which of These Factors Is Likely to Reduce Search Cost

question 133

Multiple Choice

Which of these factors is likely to reduce search cost and price dispersion?​

• A)Growth in the number of educated workers
• B)Growth of information technology
• C)Growth in unemployment
• D)Immigration of skilled workers
• E)Decline in the average earnings of workers

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Definitions:

Risk-Adjusted

An evaluation measure that takes into account the level of risk involved in an investment to determine its true performance.

Portfolio Managers

Professionals responsible for making investment decisions and overseeing the management of investment portfolios on behalf of clients.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments, and other assets.

Selection Contribution

The return added to a portfolio through the successful selection of securities, differentiating from the return that would result from holding a passive benchmark portfolio.