Which of the Following Would Be Most Likely to Cause

question 13

Multiple Choice

Which of the following would be most likely to cause the production possibilities curve for computers and education to shift outward?

• A) A choice of more computers and less education.
• B) A choice of more education and less computers.
• C) A reduction in the labor force.
• D) An increase in the quantity of resources.

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Definitions:

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, divided by the volatility of those returns.

Residual Standard Deviation

A measure of the amount by which an observed value differs from the value predicted by a model, indicating the precision of the model.

Geometric Average Return

A method to calculate the average rate of return per period on an investment, compounded over multiple periods.

Treynor Measure

A performance metric for determining how well the returns of an investment compensate the investor for taking a risk, adjusting for market volatility.