What Would Be an Example of Externalizing Costs

question 29

Multiple Choice

What would be an example of externalizing costs?

• A)All of these answers are examples of externalizing costs.
• B)water quality decline due to nonpoint source pollution
• C)releasing particulate matter or pollution into the atmosphere
• D)increased risk of flooding by changing wetlands into development
• E)loss of stream habitat and disruption of food chains due to overburden from strip mining dumped in headwater streams

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Definitions:

Expected Return

The anticipated profit or loss from an investment, based on historical data or statistical analysis, often used as a forecast.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values, commonly used in finance to assess the volatility of investment returns.

Investment

Allocating resources, usually money, with the expectation of generating an income or profit.

Reward-to-Variability Ratio

A ratio used to evaluate the return of an investment relative to its risk, with a higher ratio indicating a more favorable risk-reward profile.