Spreadsheet Models Are Referred to as What-If Models Because They

question 26

Multiple Choice

Spreadsheet models are referred to as what-if models because they

• A)are mathematical and logic-based models.
• B)allow easy instantaneous recalculation for a change in model inputs.
• C)come preloaded on computers.
• D)have specialized functions to perform detailed analysis.

Understand and calculate standard deviations, covariances, and correlation coefficients for investment returns.

Comprehend the principles of designing risky portfolios, including the calculation of expected returns and optimal risky portfolio proportion.

Grasp the concepts of complete portfolio and the capital market line.

Understand and apply Tobin's separation property in portfolio selection.

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Definitions:

Private Goods

Goods that are excludable and rivalrous in consumption, meaning access can be limited and consumption by one individual prevents others from consuming the same good.

Public Goods

Goods that are non-excludable and non-rival in consumption, meaning they are available for everyone to consume regardless of who pays and one person's consumption does not reduce availability to others.

Reward Power

The ability of an individual to influence the behavior of others by offering or withholding incentives.

Positive Outcomes

Beneficial results or effects that stem from a particular action, strategy, or intervention.