Isabel Is Responding to a Congratulatory Note She Received from a Colleague

question 63

Multiple Choice

Isabel is responding to a congratulatory note she received from a colleague. Which of the following is the best sentence to include in her response?

• A) Thanks, but I really did not deserve this promotion.
• B) So many people were so much more deserving of this promotion than I was.
• C) Your words about my promotion are much too kind!
• D) Thanks for your kind words regarding my promotion.

Calculate and interpret the global minimum variance portfolio.

Understand the role of the Capital Asset Pricing Model (CAPM) and the capital allocation line (CAL).

Understand the concept of systematic and unsystematic risk and their implications for portfolio management.

Understand and calculate the covariance and correlation between securities.

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Definitions:

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Marginal Utility

The increased happiness a buyer experiences by consuming an extra unit of a product or service.

Consumer Surplus

Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay, measuring consumer satisfaction.

Consumer Surplus

The discrepancy between what consumers are ready and capable of paying for a product or service and what they end up actually spending.