A System Is Defined as Open Because __________

question 74

Multiple Choice

A system is defined as open because __________.

• A)It is permissive in observing the various principles of management.
• B)Its subsystems do not relate to one another.
• C)It uses Theory X management assumptions.
• D)It interacts with its environment in the continual process of transforming resource inputs into outputs.
• E)It treats its employees as responsible adults.

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Definitions:

Risk-free Asset

An investment that is assumed to have no risk of financial loss, typically represented by government bonds.

Nominal Terms

Values or figures that have not been adjusted for inflation, representing current prices or values.

Treasury Bills

Short-term U.S. government debt obligations with maturities of one year or less, considered a safe and liquid investment.

Optimal Weights

The proportion of each asset in a portfolio that maximizes its expected return for a given level of risk.