What Are the Two Paths to the Kind of High

question 39

Multiple Choice

What are the two paths to the kind of high performance that effective managers pay attention to?

• A) Path less taken & path well traveled
• B) Path to meet the needs of the work and meet the needs of the people who do the work.
• C) Direction of specific results and goals
• D) none of these

Differentiate among different types of risks (market risk, unique risk, firm-specific risk, diversifiable risk).

Be familiar with Markowitz portfolio theory and the concept of optimal risky portfolio.

Calculate and interpret the expected rates of return and standard deviations for portfolios.

Understand the role of correlation and covariance in portfolio risk reduction and optimization.

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Definitions:

Perfectly Competitive

A market structure characterized by a large number of small firms, with free entry and exit, where no single firm can influence the market price.

Monopolistically Competitive

An economic framework where numerous companies offer products that are alike but not exactly the same, granting them a certain level of influence over the market.

Efficient Scale

The level of production at which a firm operates at the lowest average total cost, optimizing its scale of operations.

Average Total Cost

The total cost of production divided by the quantity of output produced. It includes all fixed and variable costs.