Initech Incorporated,a Multinational Giant,runs a Number of Diversified Businesses

question 139

Multiple Choice

Initech Incorporated,a multinational giant,runs a number of diversified businesses.Which of the following can be considered as an intellectual property of the firm?

• A) Income arising from renting lands and buildings
• B) Profits arising from the sale of agricultural crops
• C) Interest earned by lending capital to other firms
• D) Innovations and capabilities, and skills of the employees
• E) Investments made in raw materials and machinery

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Definitions:

Perfectly Positively Correlated

A relationship between two variables where they move in the same direction at the same time with a correlation coefficient of +1.

Portfolio Risk

The potential for loss or underperformance across a collection of investments held by an individual or institution.

Expected Return

The anticipated return on an investment, taking into account all possible outcomes, their probabilities, and their corresponding returns.

Required Return

The minimum rate of return on an investment that is necessary for an investor to consider making that investment.