Refer to the Above Diagram

question 80

Multiple Choice

Refer to the above diagram.The marginal propensity to save is:

• A)CD/EF.
• B)CB/CF.
• C)CB/AF.
• D)EF/CB.

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Definitions:

Arithmetic Return

The simple average of a series of returns generated over a period of time.

Sharpe Measure

A metric used to evaluate the risk-adjusted return of an investment portfolio.

Risk-Free Return

The guaranteed return on an investment with zero risk of financial loss, typically associated with government bonds.

Standard Deviation

Standard deviation is a statistical measure of the dispersion or variability of a set of data points, commonly used to quantify the risk associated with an investment's return.