In Order to Avoid Cooking Disasters, a Numerical Recipe Has

question 8

Multiple Choice

In order to avoid cooking disasters, a numerical recipe has an advantage over purely verbal directions. That is, verbal directions can become longwinded and put the cook at risk of distraction. On the other hand, a numerical recipe like "two parts water to one part rice" is

• A) easily set to music.
• B) useful for any amount of rice, because it is a ratio.
• C) is also useful in the periodic table of elements.
• D) obeys Newton's three laws of motion.

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Definitions:

World Stock Portfolio

A collection of stocks from companies located in various countries around the world, aiming for global diversification.

Volatility

Refers to the degree of variation of a trading price series over time, commonly measured by the standard deviation of logarithmic returns, indicating the risk associated with a security or market.

Treasury Bills

Short-term government securities with maturity periods of one year or less, issued at a discount from their face value.

Optimal Weights

The best proportion of different assets in a portfolio to achieve maximum return for a given level of risk.