The Common Stock Investment Strategy That Is the Most Basic

question 56

Multiple Choice

The common stock investment strategy that is the most basic strategy and is popular with conservative, quality-conscious individuals looking for competitive returns over the long run is the

• A)buy-and-hold strategy.
• B)current income strategy.
• C)growth strategy.
• D)speculation and short-term trading strategy.

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Definitions:

Marginal Rate Of Technical Substitution

The rate at which one input can be substituted for another input while keeping the level of output constant.

Marginal Rate Of Substitution

The rate at which a consumer can give up some amount of one good in exchange for another good while maintaining the same level of utility.

North American Free Trade Agreement

A trade agreement among the United States, Canada, and Mexico to reduce trade barriers and promote economic exchange.

Efficient Equilibrium

A state of balance in a market where resources are allocated in the most efficient way possible, with no room for welfare improvement without making someone else worse off.