Answer:
the assets have a correlation coefficient equal to negative one.
Explanation:
Portfolio variance can be defined as the measurement of risk or dispersion of returns of a set of securities that makes up a portfolio fluctuate over a period of time.
Simply stated, portfolio variance is typically the total returns of the portfolio over a specific period of time.
In order to calculate the portfolio variance, the standard deviations of each security in the portfolio with their respective correlations security pair in the portfolio would be used. Portfolio variance is the square of standard deviation.
A two-asset portfolio with a standard deviation of zero can be formed when the assets have a correlation coefficient equal to negative one (-1) because this defines the efficiency frontier. In Economical portfolio theory, the efficient frontier is a group of optimal portfolios that offers an investor the highest expected return for a specific risk level or offers the lowest risk for a defined level of expected return.
Answer:
The answer is B. government's spending exceeds its tax revenues
Explanation:
Government budget records deficit if its spending is more than its revenue. The main source of government revenue is from tax. And government record surplus if its revenue is more than its spending.
One of the disadvantages of government budget deficit is that inflation rate will be rising. Government might spend to stimulate the economy.
Answer: Not change the amount of pollution reduction because the marginal benefit and marginal cost of pollution reduction will not change.
Explanation:
Externality exits when one persons action affects others who are not engaged in the activity. In such situations the optimal amount of the good (externality) is determined at the point where the marginal benefit is equal to the marginal cost. When the utility is made liable for the damages it does not affect the marginal benefit or marginal cost of pollution reduction. Thus, making the utility legally liable will not change the amount of pollution reduction because the marginal benefit and marginal cost of pollution reduction will not change.
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Conflict of interest is the funding of a research study by a company that stands to benefit from a positive assessment.
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What is conflict of interest?</h3>
Conflict of interest in research exist when an individual, researcher, or company gives preference to their own interests or positive review.
- Here, the interest is a positive opinion of the company and not a contrary opinion.
- The Company and the research may not agree.
Conclusively, the research funded through conflict of interest is for positive assesment of the company and not the research.
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Answer: Competitive type of the multi-divisional structure
Explanation:
Here, in this particular case, using the given information we can state that Transector Inc. is using the <em>competitive form of the multi-divisional corporate structure</em>. In this multi-divisional structure, there tends to lie one parent organization which usually consists of several different divisions and sub-divisions that are known to operate distinguished businesses. In legal terminology, the parent organization is known to own all the divisions, but they are also known to provide them with significant autonomy, in order for them to work independently.