Which of the Following Statements Is Incorrect

question 10

Multiple Choice

Which of the following statements is incorrect?

• A)To be efficient, a competitive equilibrium must allocate goods to consumers so that no reallocation of the goods could make all consumers better off.
• B)To be efficient, a competitive equilibrium must allocate inputs among firms so that no reallocation of inputs would result in a higher output of all goods.
• C)To be efficient, a competitive equilibrium must satisfy substitution efficiency.
• D)To be efficient, a competitive equilibrium must satisfy output efficiency.

---

Definitions:

Expected Returns

A rephrased definition for Expected Return: The anticipated income or profit from an investment over a specific period, considering various possible scenarios and their probabilities.

Variances of Returns

A statistical measure of the dispersion of returns for a given security or market index, showing the degree of variation from the average.

Beta

A measure of the volatility or systematic risk of a security or a portfolio compared to the market as a whole.

Regression Analysis

A statistical method used to model the relationship between a dependent variable and one or more independent variables.