Which of the following is a second way of formulating the Markowitz model?
a. Maximizing the expected return of the portfolio subject to a constraint on variance
b. Minimizing the expected return of the portfolio subject to a constraint on variance.
c. Maximizing the variance of the portfolio subject to a constraint on the expected return of the portfolio
d. Maximizing the variance of the portfolio with no constraint needed for the expected return of the portfolio
a
RATIONALE: Two basic ways to formulate the Markowitz model are (1) to minimize the variance of the portfolio subject to a constraint on the expected return of the portfolio and (2) to maximize the expected return of the portfolio subject to a constraint on variance.
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Which of the following is the first major step in a typical control process?
A) comparing performance with standards B) setting standards C) taking corrective action D) developing values E) measuring performance
Describe rational decision-making and how it is limited by cognition and culture.
What will be an ideal response?
Jake owns an old piece of exercise equipment. He has been using the equipment merely to hang his clothes on, so Jake decides to get rid of the thing. He takes the unused exercise machine to the landfill and throws it off the back of the truck. Maggie, a teenager, is at the landfill rummaging for useful items. Maggie sees the exercise equipment and decides it is just the thing to give her sister
for Christmas, so she decides to take it home. As she is loading it into the back of her pickup truck, Jake stops and tries to get it back. The landfill owner sees the commotion and decides he would like to have the equipment as well. Who has the best rights in the exercise equipment? a. They are all joint owners. b. Maggie. c. Jake. d. The landfill owner.
What questions should managers ask when choosing technology?
What will be an ideal response?