When Economic Systems Are Inside Corporations Instead of Countries, National

question 7

Multiple Choice

When economic systems are inside corporations instead of countries, national economic policy becomes:

• A) very important
• B) impossible
• C) internationalized
• D) decentralized
• E) centralized

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Definitions:

Covariances

Covariance is a measure used in statistics to determine how much two random variables vary together.

Portfolio Variance

A measurement of the dispersion of returns of a portfolio, indicating the degree of investment risk.

Risky Securities

Financial instruments that carry a higher degree of uncertainty and a higher risk of loss, such as stocks.

Weighted Sum

A calculation that takes various quantities into account, multiplying each by a factor that reflects its importance and then adding these products together.