What Is True About Creating an Entity Relationship Diagram

question 32

Multiple Choice

What is true about creating an entity relationship diagram?

• A)There will be at most seven entities
• B)There will be at most seven relationships
• C)If you identify more than seven entities,analyze and combine until you have seven or less
• D)It is an iterative process
• E)Entities will have at most seven attributes

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Definitions:

Market Risk Premium

The extra return investors demand for holding a risky market portfolio instead of risk-free assets.

Required Rate Of Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account the risk associated with it.

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio compared to the market as a whole, indicating how sensitive the portfolio is to market movements.

Diversified Portfolio

An investment strategy that spreads investments across various asset classes to reduce risk and potential volatility.