Even If the Correlation Between the Returns on Two Securities

question 34

True/False

Even if the correlation between the returns on two securities is +1.0, if the securities are combined in the correct proportions, the resulting 2-asset portfolio will have less risk than either security held alone.

Understand the recommended practices for extending praise to employees.

Learn about common misconceptions regarding the use of positive reinforcement and how to correct them.

Appreciate the importance of valuing non-tangible rewards over tangible ones in enhancing job satisfaction.

Recognize the barriers to effective positive reinforcement and strategies to overcome them.

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Definitions:

Production Functions

A mathematical expression that describes the relationship between inputs and the maximum output that can be produced with those inputs.

Scale

The size of a business or operation, which can impact its production cost, efficiency, and ability to compete in the market.

Returns to Scale

The variation in outcome that occurs when all inputs used in the manufacturing process are increased by the same proportion.

Production Function

A mathematical equation that describes the maximum amount of output a firm can produce with a given set of inputs.