The Level of Social Responsibility That Has Historically Been the Focus

question 27

Multiple Choice

The level of social responsibility that has historically been the focus of business is

• A) Legal
• B) Economic
• C) Ethical
• D) Philanthropic

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Definitions:

Risky-Asset Portfolio

A collection of investments that have a higher risk of loss but also offer the potential for higher returns.

Market Rate

The prevailing interest rate available in the marketplace.

Minimum Variance

Minimum Variance is a portfolio strategy or model that seeks to construct a portfolio with the lowest possible volatility or risk for a given level of expected return.

Unsystematic Risk

The risk associated with a specific company or industry, which can be mitigated through diversification in an investment portfolio.