Which of the Following Statements Is True About Velocity

question 30

Multiple Choice

Which of the following statements is true about velocity?

• A) In the short run, velocity varies but in the long run, velocity is relatively constant.
• B) In the short run, velocity is relatively constant but in the long run, velocity varies.
• C) Velocity is relatively constant in the short run and in the long run.
• D) Velocity fluctuates with fluctuations in economic activity and changes in the growth rate of money supply.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability of a set of values, indicating how much the values differ from the mean.

Efficient Frontier

A concept in modern portfolio theory that represents a set of optimal portfolios offering the highest expected return for a defined level of risk.

Standard Deviation

A statistical measure of the dispersion of returns for a given security or market index, often used to gauge the amount of variability or volatility of an investment.

Expected Return

The weighted average of all possible returns from an investment, considering the probabilities of each outcome.