Examlex

Solved

___ Is an Investment Strategy Designed to Earn a Minimum

question 20

Multiple Choice

___ is an investment strategy designed to earn a minimum rate of return while allowing the investor to benefit substantially from the positive returns generated by an investment in a risky portfolio.


Definitions:

Marginal Cost

The additional cost incurred by producing one more unit of a product.

Rent-seeking

It involves seeking to increase one's share of existing wealth without creating new wealth, often through manipulation or exploitation of the economic environment.

Public Choice Theory

An economic theory that applies principles of economics to analyze political behavior and decision-making.

Government Failure

Occurs when the government becomes the tool of the rent seeker and the allocation of resources is made even less efficient by the intervention of government.

Related Questions