According to Chapter 12, How Does Contractarianism Differ from Contractualism

question 61

Multiple Choice

According to Chapter 12, how does contractarianism differ from contractualism?

• A) Contractarianism only establishes basic moral rules, such as rules against harming others, whereas contractualism also includes more detailed rules.
• B) Contractarianism assumes that human nature is bad, whereas contractualism assumes that human nature is good.
• C) Contractarianism assumes that everyone is self-interested, whereas contractualism does not.
• D) Contractarianism assumes that people in the state of nature could benefit by cooperating with each other, whereas contractualism does not.

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Definitions:

Time-Weighted Return

A method of calculating investment returns that eliminates the impact of cash flows into and out of the portfolio, focusing solely on the performance of the investments themselves.

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.