The Return That Investors Feel Is Most Likely to Occur

question 61

Multiple Choice

The return that investors feel is most likely to occur based on currently available information is known as the:

• A)required return.
• B)expected return.
• C)either the required or expected return.
• D)neither the required or expected return.

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Definitions:

Economies of Scale

Economies of scale describe the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the cost per unit of output decreases with increasing scale.

Specialization of Labor

An economic strategy where individuals or groups focus on producing a limited range of goods or services to increase efficiency and output.

Marginal Cost

The expense involved in creating one more unit of a product or service.