Determine Which of the Following Describes Ordinal Data $\mathrm { i }$

question 2

Multiple Choice

Determine which of the following describes ordinal data.
i. My best friends are Georgia, Amithaba, and Raphael.
ii. My favorite numbers are 2,7 and 13 .

• A) i only
• B) both \(\mathrm { i }\) and ii
• C) ii only
• D) neither i nor ii

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Definitions:

Certainty Equivalent Approach

A method of evaluating investments by adjusting future cash flows to reflect the risk, converting them into certain cash flows in present value terms.

Overlay Approach

A strategy used in investing that manages risk by using various hedging techniques to achieve a desired exposure.

Certainty Equivalent Factor

A concept used in finance to adjust the future cash flows of an investment to account for risk, essentially converting them into a guaranteed cash flow that an investor would accept in place of holding a risky asset.

Value Range

The spread between the highest and lowest values of a financial asset, indicating its volatility and potential for profit or loss.