Consider the Weighted Voting System [37: 18,13,11, W₄, 1,1]

question 25

Multiple Choice

Consider the weighted voting system [37: 18,13,11, w₄, 1,1] . What is the smallest possible value for the weight w₄ which makes P₄ pivotal in the sequential coalition ?

• A) 2
• B) 5
• C) 8
• D) 10
• E) None of the above.

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Definitions:

Arbitrage Opportunity

A situation where a trader can make a profit without risk by simultaneously buying and selling the same or equivalent assets in different markets to exploit price differences.

Risk-free Rate

A theoretical return on an investment with zero risk of financial loss, often represented by government bonds.

Alpha

Alpha is a financial metric indicating the performance of an investment relative to a benchmark index, representing the extra value that a portfolio manager adds or subtracts from a fund's return.

Expected Rate of Return

The projected percentage return on an investment over a given period, factoring in all known variables.