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Which of the following causes inadequacy in ad hoc attempts-internalizing external costs and assigning property rights to unowned goods such as wild species-to repair market failures?
Risk-Free Rate
The theoretical return on investment with no risk of financial loss, typically represented by the yield on government securities.
Standard Deviation
A statistical measure that quantifies the amount of variability or dispersion around an average.
Optimal
The most favorable or desirable condition, outcome, or level, often in terms of efficiency or success.
Minimum-Variance Portfolio
A portfolio constructed to achieve the lowest possible risk (variance) for a given rate of expected return, optimizing risk-adjusted returns.
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