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Briefly explain what decision criteria are. Identify two approaches that may be used to weight these criteria.
Diversification Objective
A strategy aimed at reducing risk by allocating investments among various financial instruments, industries, or other categories.
Fluctuations In Income
Variations or changes in the amount of money received over a period, which can affect purchasing power and economic stability.
Earthquake Insurance
A type of property insurance policy that covers damage to buildings and personal property caused by seismic activities.
Utility Function
An equation that assigns a level of utility or satisfaction to each bundle of goods, allowing for comparisons of consumer preferences.
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