In Which of the Following Objectionable Activities Was Wendy Involved,if

question 48

Multiple Choice

In which of the following objectionable activities was Wendy involved,if any,in selling the kites?

• A) She was not involved in any objectionable activities.
• B) She prevented corporate opportunity.
• C) She prevented profit maximization.
• D) She committed private-profit allocation.
• E) She committed corporate profit reduction.

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Definitions:

Covariance

A measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns move together. A negative covariance means they vary inversely.

Variance

A measure of the dispersion of a random variable. Equals the expected value of the squared deviation from the mean.

Fairly-Priced Securities

Securities that are believed to be priced appropriately according to their risk level and the expected rate of return.