Semivariance,when Applied to Portfolio Theory,is Concerned with

question 53

Multiple Choice

Semivariance,when applied to portfolio theory,is concerned with

• A) The square root of deviations from the mean.
• B) All deviations below the mean.
• C) All deviations above the mean.
• D) All deviations.
• E) The summation of the squared deviations from the mean.

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Definitions:

Marginal Social Cost

The complete expense incurred by society when one more unit of a product or service is created, encompassing both personal expenses and any external factors.

Marginal Benefit

The enhancement in satisfaction or benefit achieved by using or producing another unit of a product or service.

External Costs

Costs of an economic activity that are not borne by the participants in the activity but are imposed on others, such as pollution.

Competitive Free Market

A market structure where many firms offer products or services that are similar, allowing for free entry and exit, with prices determined by supply and demand forces.