Tools Used by Economists Include

question 196

Multiple Choice

Tools used by economists include

• A)historical study.
• B)mathematical reasoning.
• C)statistical inference.
• D)All of the above are correct.

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Definitions:

Standard Deviation

In finance, it measures the investment's volatility or risk by determining how much the returns on the investment can deviate from the average return.

Risk-Free Return

The theoretical return on an investment with zero risk, often represented by the yield on government securities.

Managed Portfolio

An investment portfolio that's actively managed by a professional, aiming to achieve specified investment goals.