In Hierarchical Cluster Analysis, Objects Can Leave One Cluster and Join

question 21

True/False

In hierarchical cluster analysis, objects can leave one cluster and join another, as clusters are being formed until they are finalised.

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Definitions:

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade and capital flow between countries.

Equilibrium

In economics and finance, a state where supply equals demand, and market forces are in balance, resulting in stable prices.

WEBS Portfolios

WEBS Portfolios, originally known as World Equity Benchmark Shares, are exchange-traded funds that track international stock market indexes.

Passively Managed

An investment strategy that involves mimicking the performance of a market index, typically resulting in lower fees and turnover rates compared to active management.