Decision Criteria to Evaluate Alternatives Can Include Costs, Profits, Whether

question 74

True/False

Decision criteria to evaluate alternatives can include costs, profits, whether the decision will work, and fairness.

---

Definitions:

Diversifiable Risk

Is the type of investment risk that can be reduced through diversification of a portfolio, related to specific factors affecting individual companies or sectors.

Market Rewards

The returns or gains that investors expect to earn from their investments in the financial markets.

Non-diversifiable Risks

Risks that affect all investments across the market and cannot be mitigated through diversification.

Financial Markets

Marketplaces where individuals and entities can trade financial securities, commodities, and other fungible items of value at low transaction costs and at prices that reflect supply and demand.