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Lagged Effect Refers To

question 39

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Lagged effect refers to:

Understand and calculate covariance between two securities.
Understand and calculate the correlation coefficient between two securities.
Calculate the expected return of a portfolio based on its constituents and their weights.
Understand the concept of perfectly negatively correlated securities and their impact on portfolio risk and return.

Definitions:

Hygiene Factors

Elements related to the work environment that can lead to job dissatisfaction if absent but do not necessarily motivate if present, as described in Herzberg's motivation theory.

Lower-Level Needs

Basic physiological and safety needs in Maslow's hierarchy that must be satisfied before higher-level psychological needs.

Motivation

The method that starts, directs, and sustains actions aimed at achieving goals.

Needs-Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five basic categories of needs: physiological, safety, love, esteem, and self-actualization, in that order.

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