Which of the Following Is One of the Major Liabilities

question 20

Multiple Choice

Which of the following is one of the major liabilities of start-ups?

• A)Acuteness
• B)Completeness
• C)Validness
• D)Complexness
• E)Smallness

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Definitions:

Risk-Free Rate

The theoretical return on an investment with no risk of financial loss, typically represented by the yield on government bonds from stable countries.

Perfectly Negatively Correlated

Describes two variables that move in opposite directions; if one increases, the other decreases.

Global Minimum Variance Portfolio

An investment portfolio that is designed to have the lowest possible risk (variance) for the expected return, part of modern portfolio theory.

Standard Deviation

A measure of the dispersion or variability in a set of data points, indicating the degree of risk or volatility.