If Some Gain and Some Lose as the Result of a Change

question 70

Multiple Choice

If some gain and some lose as the result of a change, and it can be demonstrated that the value of the gains exceeds the value of the losses, then the change is said to be

• A) potentially efficient.
• B) inefficient.
• C) unequivocally Pareto optimal.
• D) technically efficient.

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Definitions:

Futures Contract

Standardized legal agreements to buy or sell a specific commodity or financial instrument at a predetermined price at a specified time in the future.

Short Position

Entering a financial transaction where the investor benefits from a decline in the value of an asset.

Delivery Date

The specific date on which a transaction, particularly in futures contracts, is scheduled to be completed or settled.

Negotiable

Capable of being discussed and modified in a transaction or exchange, often referring to the terms of agreements or financial instruments that can be transferred or sold.