What Is the Difference Between a Change in the Demand

question 117

Multiple Choice

What is the difference between a change in the demand and a change in quantity demanded?

• A) A change in demand requires a movement along the demand curve, a change in quantity demanded does not.
• B) A change in demand shifts the entire curve, a change in quantity demanded means price changed.
• C) A change in quantity demanded means consumer preferences have changed.
• D) A change in demand creates a new market equilibrium, a change in quantity demanded does not.

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Definitions:

Mean-Variance Efficient Portfolio

An investment portfolio constructed to offer the highest expected return for a given level of risk, or the lowest risk for a given level of expected return, based on mean-variance optimization.

Expected Returns

The anticipated profit or loss from an investment, based on projections or historical data.

Variances of Returns

A statistical measure of the dispersion of returns for a given security or market index, often used to quantify risk.

Mean-Variance Efficient Portfolio

A portfolio constructed to have the highest possible return for a given level of risk, or equivalently, the lowest risk for a given level of expected return, according to Harry Markowitz's theory.