The Eigenvalue-Eigenvector Pairs for the Matrix $$A = \left( \begin{array} { c c c } 4 & 0 & 0 \\0 & 3 & 1 \\0 & - 1 & 1\end{array} \right) \mathrm { X }$$

question 35

Multiple Choice

The eigenvalue-eigenvector pairs for the matrix $$A = \left( \begin{array} { c c c } 4 & 0 & 0 \\0 & 3 & 1 \\0 & - 1 & 1\end{array} \right) \mathrm { X }$$ are Select all that apply.

• A) \[4 , \left( \begin{array} { l }
• 1 \\
• 0 \\
• 0
• \end{array} \right)\]
• B) \[2 , \left( \begin{array} { c }
• 0 \\
• 1 \\
• - 1
• \end{array} \right)\]
• C) \[2 , \left( \begin{array} { c }
• 1 \\
• - 1 \\
• 0
• \end{array} \right)\]
• D) \[2 , \left( \begin{array} { l }
• 0 \\
• 1 \\
• 1
• \end{array} \right)\]
• E) \[2 , \left( \begin{array} { l }
• 0 \\
• 1 \\
• 0
• \end{array} \right)\]

Understand the basic concepts and calculation of variance and standard deviation for financial assets.

Comprehend the factors affecting expected returns on stocks and how they are calculated.

Grasp the principles of the Capital Asset Pricing Model (CAPM) and its implications on expected returns.

Understand the nature of diversified and non-diversified risk in portfolio management.

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Definitions:

Surplus

An excess of income or assets over expenditure or liabilities in a given period, indicating financial health.

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service, typically used to control costs for essential items like food and rent.

Equilibrium Price

The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, representing a state of market balance.

Shortage

A situation where demand exceeds supply, resulting in insufficient availability of a product or service.