If You Worked in an Organization That Had to Make

question 176

Multiple Choice

If you worked in an organization that had to make an important decision and the information required to make the decision was not available, which of the following would be an appropriate response?

• A)Evidence-based management
• B)Crowdsourcing
• C)Big data
• D)Analytics
• E)Stimulate controversy

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Definitions:

Unanticipated Inflation

Inflation that occurs when the actual rate exceeds what was expected, potentially eroding purchasing power and investment returns.

Security Market Line

A graphical representation of the Capital Asset Pricing Model, showing the relationship between the expected return of a security and its systemic risk as measured by beta.

APT

APT, or Arbitrage Pricing Theory, is a financial model that estimates the returns on an asset based on its risk in relation to multiple risk factors.

Well-Diversified Portfolio

A collection of investments that spread out risk by incorporating a wide variety of assets, thereby minimizing the impact of any single asset's performance on the overall portfolio.