What Is the Science of Fact-Based Decision Making

question 58

Multiple Choice

What is the science of fact-based decision making?

• A) Analytics
• B) Structured decisions
• C) Unstructured decisions
• D) Semistructured decisions

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Definitions:

Systematic Risk

The risk of loss associated with the entire market or market segment.

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates the stock is more volatile than the market.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of values; widely used in finance to measure the volatility of an investment's returns.

Probability Distribution

A mathematical function that provides the probabilities of occurrence of different possible outcomes for an experiment.