A Factor Contributing to Increased Acceptance of Diversity Is

question 9

Multiple Choice

A factor contributing to increased acceptance of diversity is:

• A) discrimination.
• B) passive bias.
• C) uncertainty avoidance.
• D) globalization.

Acknowledge the variability and unrepeatability issues in simulations that rely on random numbers.

Understand different types of simulation, including Monte Carlo, and their characteristics.

Recognize the advantages and disadvantages of simulation in solving complex problems.

Understand the application areas of simulation in business and operations.

---

Definitions:

Bond's Duration

Bond's duration measures the sensitivity of the bond's price to changes in interest rates, often indicating the average time it takes for a bond to repay its true cost.

Price Volatility

The rate at which the price of a security increases or decreases for a given set of returns, representing the risk of price change.

Bond Swap

The process of selling one bond and purchasing another bond with different characteristics, often for tax optimization or to improve returns.

Active Portfolio Management

A strategy where portfolio managers make regular buy and sell decisions to try to outperform the market or a specific benchmark.