The 'Free Rider Tendency' Explains Which of the Following

question 51

Multiple Choice

The 'free rider tendency' explains which of the following?

• A)why group productivity grows in a linear fashion
• B)why groups will tend to let an unproductive outsider in the group
• C)why there is always one person who does not work as hard as other group members
• D)why the productivity of groups is exponential
• E)why individuals tend to expend less effort when they are working collectively than when they are working individually

---

Definitions:

Beta

Beta is a measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates that the stock is more volatile than the market, while a beta less than 1 suggests it is less volatile.

Expected Return

The weighted average of all possible returns for a given investment, accounting for the likelihood of each outcome.

Average Stock

Average Stock is a metric used to estimate the average amount of inventory a company holds over a certain period of time.

Market Risk Premium

The additional return an investor requires from a market portfolio over the risk-free rate as compensation for bearing higher risk.