Which of the Following Statements Is Reflective of the Classical

question 15

Multiple Choice

Which of the following statements is reflective of the Classical theory's perspective on why people break the law?

• A) If we don't know any better we will make mistakes.
• B) If we need it we will take it.
• C) If we think we can get away with it we will break the law.
• D) If the devil makes us do it we can't help ourselves.

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Definitions:

Data Mining

The process of using statistical techniques to extract and identify patterns, relationships, or information from large datasets.

Active Portfolio Management

The strategy of making buy and sell decisions of investment portfolio holdings, aiming to outperform certain benchmarks.

Modern Portfolio Theory

An investment theory that proposes optimizing the expected return for a given amount of portfolio risk, or alternatively minimizing risk for a given level of expected return, through diversification.

Markowitz

Harry Markowitz, an economist who developed Modern Portfolio Theory, emphasizing the benefits of diversification.