The Difference Between the Demand Price and the Supply Price

question 17

Multiple Choice

The difference between the demand price and the supply price at the quota limit is:

• A)the quota rent.
• B)the rent received by landlords who own rent-controlled apartments.
• C)the opportunity cost of using or buying a good,subject to an import quota.
• D)usually large enough to cause a surplus.

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Definitions:

Jensen's Measure

Also known as alpha, it's a metric used to evaluate the performance of an investment portfolio by comparing its risk-adjusted return to a benchmark.

Residual Standard Deviation

A measure of the amount of variance in a dataset not explained by the predictive variables, often used in regression analysis.

Total Abnormal Return

The sum of the differences between the expected return on a security, based on a model like the CAPM, and the actual return over a specific period.

Bogey Portfolio

A benchmark portfolio against which the performance of an investment portfolio can be measured.