Determine Which of the Four Levels of Measurement Is

question 77

Multiple Choice

Determine which of the four levels of measurement is most appropriate.
-The subjects in which college students major.

• A)Nominal
• B)Ordinal
• C)Ratio
• D)Interval

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Definitions:

Diversified Away

The reduction of risk in an investment portfolio by allocating investments among various financial instruments, industries, and other categories to minimize the impact of any single asset or risk.

Perfectly Negatively Correlated

This refers to a relationship between two variables where one variable increases as the other decreases with a correlation coefficient of -1.

Portfolio's Risk

The overall risk associated with holding a portfolio of investments, considering how the risks of the individual investments affect the portfolio as a whole.

Stand-alone Risk

Stand-alone risk refers to the risk associated with investing in a single asset or project, without considering the diversity or portfolio effects.