Trinh Quits His $80 000-A-Year Job to Become a Full-Time

question 98

Multiple Choice

Trinh quits his $80 000-a-year job to become a full-time volunteer at a museum.The opportunity cost of his decision is:

• A)0 since he will no longer be earning a salary.
• B)depends on the 'going rate' of museum employees.
• C)at least $80 000.
• D)the value he attributes to the joy of working at a museum.

Recognize the importance and application of brainstorming in creativity and innovation within organizations.

Understand the impact of leader-member exchanges on creativity.

Identify strategies for fostering a creative work environment, including group diversity and support.

Analyze the potential negatives of overemphasizing innovation in a corporate setting.

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Definitions:

True Market Portfolio

An optimal portfolio that includes all available assets in the market, their proportions reflecting their market values, as suggested by the Capital Asset Pricing Model.

Derivatives

Claims whose value depends on what happens to the value of some other asset. Futures and options are two important types of derivatives, and their values depend on what happens to the prices of other assets. Therefore, the value of a derivative security is derived from the value of an underlying real asset or other security.

Foreign Securities

Investment instruments issued in a jurisdiction outside of the investor's country, including stocks, bonds, and other financial assets.

Negative Beta Value

Indicates an investment's return moves opposite to the market's return, suggesting a potential risk-reducing benefit in a diversified portfolio.