Other Things the Same,as the Stocks of a Greater Number

question 68

Multiple Choice

Other things the same,as the stocks of a greater number of corporations are held in a portfolio,

• A)risk increases at an increasing rate.
• B)risk increases at a decreasing rate.
• C)risk decreases at an increasing rate.
• D)risk decreases at a decreasing rate.

---

Definitions:

Marginal Revenues

Represents the additional income generated from the sale of one more unit of a good or service.

Total Revenues

The gross revenue obtained from merchandise or service transactions before removing any operational expenses.

Total Revenue Curve

A graphical representation showing the relationship between the total revenue received by a firm and its quantity of output sold.

Pure Competition

A market structure characterized by a large number of small firms, homogenous products, and easy entry and exit, leading to price-taking behavior.