Specialization Can Occur Because

question 18

Multiple Choice

Specialization can occur because

• A) governments pass laws that require it.
• B) varying skills differentiate workers.
• C) absolute advantage creates specialization among laborers.
• D) managers and laborers share job tasks.

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Definitions:

Covariance

A measure that indicates the extent to which two securities move in the same or opposite directions.

Stock Selection Return

The return achieved by an investor that can be attributed to the specific stocks chosen for investment, rather than the overall market movement.

Cross Border Fund

An investment fund that seeks to invest in assets located in countries other than where the fund is domiciled.

Benchmark

A standard or point of reference against which things may be compared or assessed, often used in investing to measure the performance of securities or portfolios.