Time-Series Forecasting Models

question 15

Multiple Choice

Time-series forecasting models:

• A) are useful whenever changes occur rapidly and wildly
• B) are more effective in making long-run forecasts than short-run forecasts
• C) are based solely on historical observations of the values of the variable being forecasted
• D) attempt to explain the underlying causal relationships which produce the observed outcome
• E) none of the above

Analyze real-world examples of social entrepreneurship, such as microloans by the Grameen Bank, to understand their mechanisms and effects.

Understand cultural differences in professional settings and their implications.

Recognize and explain the concept of ethnocentrism and its effects on international business relations.

Analyze the structure and dynamics of different types of networks within and outside organizations.

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Definitions:

Security Market Line (SML)

Positively sloped straight line displaying the relationship between expected return and beta.

Arbitrage Pricing Theory (APT)

An equilibrium asset pricing theory that is derived from a factor model by using diversification and arbitrage. It shows that the expected return on any risky asset is a linear combination of various factors.

Arbitrage Pricing Theory (APT)

A financial model that estimates the price of assets based on the relationship between their expected return and macroeconomic factors that influence all assets' returns.

Market Risk Premium

The surplus return an investor aspires to earn by holding onto a market portfolio fraught with risks as compared to safeguarded, risk-free assets.