Consider These Two Investment Strategies Strategy __________ Is the Dominant Strategy Because __________

question 27

Multiple Choice

Consider these two investment strategies: $$\begin{array} { l c c } & \text { Strategy 1(\%) } & \text { Strategy 2(\%) } \\\text { Expected return } & 6 & 9 \\\text { Standard deviation } & 0 & 4 \\\text { Highest return } & 6 & 15 \\\text { Lowest return } & 6 & 6 \\\hline\end{array}$$ Strategy __________ is the dominant strategy because __________.

• A) 1; it is riskless
• B) 1; it has the highest reward/risk ratio
• C) 2; its return is greater than or equal to the return of Strategy 1
• D) 2; it has the highest reward/risk ratio
• E) Both strategies are equally preferred.

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Definitions:

Ellis' Three Questions

A framework proposed by Marc Ellis for evaluating the ethical and functional aspects of actions within organizations, focusing on purpose, engagement, and impact.

McClelland

Refers to David McClelland's theory on the three types of motivational needs - achievement, affiliation, and power - influencing human behavior.

Principal Needs

Refers to the fundamental requirements or essential priorities that guide decision-making and activities within an organization or project.

Herzberg's Findings

The results from Frederick Herzberg's research which identifies factors causing satisfaction and dissatisfaction in the workplace, leading to the motivation-hygiene theory.