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1. Which of the following is true about problem solving?
B. Analyzing the problem involves characterizing the possible decisions.
C. Decision making involves translating the results of the model in the organization.
D. Structuring the problem involves identifying constraints.
2. An investor needs to decide how much to invest in each of five stocks in its portfolio. He has estimated the average return and risk for each stock and constructed the model that would maximize his return while limiting the total risk of the portfolio. What type of analysis is he conducting?
A. Descriptive
B. Prescriptive
C. Normative
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