The First Step of the Minimal Spanning Tree Solution Method

question 18

Multiple Choice

The first step of the minimal spanning tree solution method is to

• A) select any starting node.
• B) select the node closest to the starting node to join the spanning tree.
• C) select the closest node not presently in the spanning tree.
• D) arbitrarily select any path in the network from origin to destination.

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Definitions:

Market Portfolio

A theoretical bundle of investments that includes all types of assets available in the market, with each asset weighted by its market capitalization.

Dividend Decline

A situation in which a company reduces the amount of dividends declared and distributed to its shareholders compared to previous periods.

Capitalized Earnings Model

A method to value a company by dividing its earnings by the capitalization rate, assuming constant future earnings.

P/E Ratio

Price-to-Earnings Ratio, a valuation metric that compares a company's stock price to its per-share earnings, used to evaluate if a stock is over or undervalued.