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Joshua, a manager, instructed his subordinate, Leona, to mobilize their team and prepare a report on how the office could be made more environment-friendly. Leona misunderstood Joshua and explained to her team members that their manager wanted them to minimize the usage of office resources. In this context, why would it have been better for Joshua to communicate to Leona through an e-mail instead of instructing her orally?
Opportunity Sets
The range of possible investment opportunities available to an investor, given their resources and risk tolerance.
Risk-free Rate of Return
The theoretical rate of return of an investment with zero risk, typically represented by government bonds.
Market Rate of Return
The expected or average annual rate of return on an investment, based on historical or specified market data.
Asset-specific Risk
The risk associated with an investment in a specific asset, which can result from factors unique to that asset, independent of the market.
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