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Question :
MULTIPLE CHOICE
1.Which of the following incorrect?
a.
A global optimum a local : 1825492

**MULTIPLE CHOICE**

1.Which of the following is incorrect?

a. |
A global optimum is a local optimum in a nonlinear optimization problem. |

b. |
A local maximum is a global maximum in a concave nonlinear optimization problem. |

c. |
A global minimum is a local minimum in a convex nonlinear optimization problem. |

d. |
A local optimum is a global optimum in a nonlinear optimization problem. |

2.The measure of risk most often associated with the Markowitz portfolio model is the

a. |
portfolio average return. |

b. |
portfolio minimum return. |

c. |
portfolio variance. |

d. |
portfolio standard deviation. |

3.An investor can pick the mean-variance tradeoff that he or she is most comfortable with by looking at a graph of the

a. |
feasible region. |

b. |
pooled components. |

c. |
rolling horizon. |

d. |
efficient frontier. |

4.Which of the following is not a parameter of the Bass model for forecasting adoption of a new product?

a. |
the coefficient of innovation |

b. |
the coefficient of interaction |

c. |
the coefficient of imitation |

d. |
the estimated number of people to eventually adopt the new product |

5.When the number of blending components exceeds the number of storage facilities, the number of feasible solutions to the blending problem

a. |
is reduced. |

b. |
is increased. |

c. |
is unchanged. |

d. |
is zero. |

6.In the Bass model for forecasting the adoption of a new product, the objective function

a. |
minimizes the sum of forecast errors. |

b. |
minimizes the sum of squared forecast errors. |

c. |
maximizes the number of adoptions. |

d. |
maximizes the number of adoptions and imitations. |

7.Which of the following is not true regarding a concave function?

a. |
It is bowl-shaped down. |

b. |
It is relatively easy to maximize. |

c. |
It has multiple local maxima. |

d. |
It has a single global maximum. |

8.A convex function is

a. |
bowl-shaped up. |

b. |
bowl-shaped down. |

c. |
elliptical in shape. |

d. |
sinusoidal in shape. |

9.If the coefficient of each squared term in a quadratic function is positive, the function is

a. |
concave. |

b. |
convex. |

c. |
elliptical. |

d. |
sinusoidal. |

10.Components that share a storage facility are called

a. |
constrained components. |

b. |
indexed components. |

c. |
blended components. |

d. |
pooled components. |

11.The key idea behind constructing an index fund is to choose a portfolio of securities that

a. |
is a mix of growth-oriented and income-oriented stocks. |

b. |
minimizes risk without sacrificing liquidity. |

c. |
mimics the performance of a broad market index. |

d. |
balances short-term and long-term investments. |

12.Components are referred to as pooled if they

a. |
are shared by two or more customers |
c. |
share a storage facility |

b. |
have common ingredients |
d. |
are interchangeable |