A Double Coincidence of Wants

question 1

Multiple Choice

A double coincidence of wants

• A)is required when there is no item in an economy that is widely accepted in exchange for goods and services.
• B)is required in an economy that relies on barter.
• C)is a hindrance to the allocation of resources when it is required for trade.
• D)All of the above are correct.

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Definitions:

Risk-Free Return

The theoretical return of an investment with zero risk, often represented by the yield of government bonds like U.S. Treasury bonds.

Betas

A metric that assesses the systematic risk or volatility faced by a security or portfolio in contrast to the entire market.

Sharpe Measure

A ratio used to evaluate the risk-adjusted performance of an investment, considering both the return and the volatility of the investment.

Risk-Free Return

The theoretical return on investment with no risk of financial loss, typically associated with government bonds.