The Transaction Cycles Approach Leads to Efficient Processing of Large

question 47

Multiple Choice

The transaction cycles approach leads to efficient processing of large number of transactions because

• A)transaction cycles are easier to computerize.
• B)a large number of transactions within a given cycle can be categorized into a relatively small number of distinct types.
• C)the transaction cycle approach represents the natural order of business.
• D)transaction cycles are easy to understand.

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Definitions:

Markowitz Model

A portfolio optimization theory that demonstrates how to achieve the best portfolio allocation to maximize return for a given level of risk through diversification.

Systematic Risk

The risk inherent to the entire market or entire market segment, which cannot be eliminated through diversification.

Index Model

A model that describes the relationship between the returns of a stock and the returns of a market index.