______ Helps in Constructing a Mathematical Model to Predict the Future

question 28

Multiple Choice

______ helps in constructing a mathematical model to predict the future sales, based on past data.

• A) Predictive analytics
• B) Decision analysis
• C) Prescriptive analytics
• D) Descriptive analytics

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Definitions:

Portfolio AB

A diversified collection of investments of varying types held by an individual or institution.

Market Risk Premium

The additional return expected by investors for accepting the higher risk associated with the equity market over a risk-free asset.

Risk-Free Rate

The risk-free rate is the theoretical rate of return of an investment with zero risk, often represented by the yield of a short-term government bond.

Beta

A measure of a stock's volatility in relation to the overall market, used in the Capital Asset Pricing Model to determine the expected return of an investment.