The benefits of portfolio diversification can be obtained if the fund manager adds the stocks which are less than perfectly correlated. In other words, the stocks in a portfolio should have coefficient correlation lesser than 1. The market portfolio is considered to be fully diversified, this is why if the stocks with high correlation with market portfolio is added to our own portfolio, it will approach to the fully diversified portfolio and help in reducing the total risk.
Answer:
<u>A) private-sector entrepreneurs can expropriate the profits generated by the efforts of private and public entities.</u>
Explanation:
- As there exist four basic structures of the market economy in the form of perfect competition, imperfect competition, oligopoly, and monopoly.
- Thus without any legal system of trade in the market economy, the profits that are generated by the public and private sectors can be taken away by these entities as a large number of small firms tends to compete in the market against each other with there homogenous products.
- Thus under such circumstances, the market economy would deprive all the profits made by the other forms in the market and put barriers to entry for others. Buyers thus will be deprived of the quality products.
Answer and explanation:
1) Chinese online retailer Alibaba offers products on its web-page mostly to be sold in bundles offering to ship worldwide. Goods traded in Alibaba tend to be cheaper than average including innovative products usually offered in Asian markets. The company booked sales for around $53,000 million in 2019. Then, businesses offering non-perishable goods could imitate Alibaba's distribution network which benefits them in reducing costs in personnel, stores, and warehouses.
2) Alibaba attracts consumers to import due to the low prices of the products offered in its web-page and the easy payment method that accepts multiple methods such as credit or debit cards, money orders or digital wallets. Individuals can also be encouraged to engage in exporting following the Alibaba model which has resulted to be profitable for the firm.
Genetic components for eating disorders account for 40 to 60 percent of the risk for anorexia.
Anorexia means a loss or lack appetite for food or total aversion to food, it is a psychological and life-threatening disorder that goes well beyond out-of-control dieting.
Answer:
The correct answer is rational decision making perspective.
Explanation:
The "rational model" or "absolute rationality" of decision-making consists of five phases:
-
Define the objective
- Gather information
- Identify the possible options
- Evaluate alternatives
- Experience the effects
However, making a decision is not just an exercise in rationality, an orderly and effective execution of a sequence of actions. In the practice of organizations, taking into account the importance of risks and limitations (resources, time, available information, etc.) within which the decision must be made, it is often not possible or convenient to explore all alternatives and evaluate all the consequences analytically. We can rely on the experience and judgment of the decision makers, who renounce to pursue an optimal solution for a simply satisfactory one. We speak in this case, using an expression created by Herbet Simon, of "limited rationality."
Obviously, in the practice of decision-making processes, there is always the possibility that we should return to an earlier stage or even that the process does not reach the end (that is, choose not to decide). In addition, in an organizational context there are always social actors that guide their actions according to strategies aimed at maintaining or developing their power of decision and influence. Therefore it is questionable that adherence to the rational model is always the best way to make decisions.
