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Homework answers / question archive / 1)Suppose an economy produces only two goods namely A and B use a production possibilities curve to illustrate improved human capital

1)Suppose an economy produces only two goods namely A and B use a production possibilities curve to illustrate improved human capital

Economics

1)Suppose an economy produces only two goods namely A and B use a production possibilities curve to illustrate improved human capital. Let A be on the y-axis as a capital-intensive good in production and let B be on the x-axis as a labour -intensive good in production

2)While stock selection is best approached from the bottom-up, ignoring the top- down can be extraordinarily expensive. The bottom-up can also inform the top-down. As Ben Graham pointed out " True bargain issues have repeatedly become scarce in bull markets (James Montier)"

Differentiate between the bottom-up and top-up approach to fundamental analysis. (3)

Do you think investors should choose between the two approaches, or do you believe that they are complimentary?

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