Which of These Activities Will Most Likely Impose an External

question 43

Multiple Choice

Which of these activities will most likely impose an external cost?

• A)Betty plants flowers in her garden.
• B)Bonnie gets a flu vaccine.
• C)Bridget drives her car after having too much alcohol to drink.
• D)Becky buys a new flat screen television.

Understand the role of variance and standard deviation in measuring the dispersion of returns for investments.

Recognize the factors influencing the expected return of a portfolio, including weights based on probability, investment amount, and systematic risk.

Realize the potential to manage and manipulate portfolio risk through investment in diverse securities including international exposure.

Acknowledge the limitations of diversification, particularly in eliminating all forms of risk.

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Definitions:

Geologic Timescale

A system of chronological dating that relates geological strata to time, used by geologists to describe the timing and relationships of events in Earth's history.

Cenozoic

The current geological era, beginning about 66 million years ago, characterized by the significant development of mammals and birds following the extinction of dinosaurs.

Environmental Change

The alteration of the environment due to natural processes or human activities.

Sparse Resources

Refers to limited or scarce natural assets or commodities that are not abundant enough to meet demand.