Nathan Was Not Interested in Listening to the Vendors' Ideas

question 19

Multiple Choice

Nathan was not interested in listening to the vendors' ideas about switching to environmentally-friendly paint at his car production facility because he knew the current product he used worked just fine. What is the reason behind Nathan's resistance to change?

• A) perceptions
• B) personality
• C) threat to power
• D) economic reasons

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Definitions:

Expected Returns

The average of all possible returns for an investment, weighted by the likelihood of each outcome.

Standard Deviations

A statistical measure indicating the amount of variation or dispersion from the average or expected value, widely used in finance to assess investment risk.

Risk Premium

The extra return expected by investors for holding a risky asset over a risk-free asset, compensating them for the risk of loss.

Treasury Bill

Short-term government securities with maturity periods typically less than a year, considered to be risk-free investments.