Which of the Following Is True About the 1993 Upper

question 45

Multiple Choice

Which of the following is true about the 1993 upper Mississippi River flood and 1976 Thompson River flood?

• A) both floods lasted approximately the same amount of time
• B) both floods resulted from similar-sized storms
• C) in both floods, most damage occurred on a broad floodplain adjacent to the river
• D) none of these

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Definitions:

Portfolio's Sigma

A statistical term that represents the standard deviation of returns of an investment portfolio, reflecting its risk.

Mean-Variance Efficient Portfolio

A portfolio construction theory that suggests the best investment portfolio is one that offers the highest expected return for a given level of risk or the lowest risk for a given level of expected return.

Single-Index Structure

A portfolio model that relates the returns on each asset to a single market index.

Sensitivity Coefficients

Measurements that indicate how much the output of a mathematical model or system can change in response to changes in its inputs.