Which of the Following Observations Is an Example of a Positive

question 50

Multiple Choice

Which of the following observations is an example of a positive correlation?

• A)When women gain less weight than average during pregnancy,the birthweights of their babies tend to be lower than average.
• B)When a population's intake of green tea increases,the percentage of lung cancer cases in that population decreases.
• C)When members of a population consume fewer fruits and vegetables,their risk of high blood pressure increases.
• D)When a group of children increases their physical activity levels,the percentage of the children who contract cold infections decreases.

Grasp the concept of diversification and its effects on portfolio risk.

Define and differentiate between systematic and nonsystematic risks.

Comprehend the efficient frontier and its importance in portfolio theory.

Recognize the expected return of a portfolio of risky securities and how it is calculated.

---

Definitions:

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account its risk level.

Target Cost

The desired cost of a product as determined by its expected selling price minus desired profit, aimed to ensure competitiveness and profitability.

Preventive Maintenance

Maintenance activities carried out regularly on equipment to prevent unexpected failures.

Performance Capabilities

The ability of a company or product to function effectively, often measured against predetermined standards or competitor offerings.