Argus Inc Is a Large Multinational Company Owned by Two Partners

question 35

Multiple Choice

Argus Inc. is a large multinational company owned by two partners, is active in the petroleum, capital market, chemicals, steel, beverages, hospitality, airlines, education, automobiles, and consumer electronics industries. The company has multiple brands and a large product portfolio under its banner. Which of the following terms would best describe this company?

• A) a flagship brand
• B) a single-business firm
• C) a dominant-business firm
• D) a conglomerate

Understand and calculate covariance between two securities.

Understand and calculate the correlation coefficient between two securities.

Calculate the expected return of a portfolio based on its constituents and their weights.

Understand the concept of perfectly negatively correlated securities and their impact on portfolio risk and return.

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Definitions:

Four-figure Accuracy

A level of precision in numerical information or calculations that is rounded to or expressed in thousands.

Algebraic Expression

A statement of the mathematical operations to be carried out on a combination of numbers and variables.

Monomial

An expression containing only one term.

Binomial

An expression containing two terms.