Explain Inner-Speech.How Does It Differ from Private Speech

question 116

Essay

Explain inner-speech.How does it differ from private speech?

Describe the equilibrium process in the money market.

Explain the logic of liquidity preference theory and its effect on aggregate demand.

Understand the reasons for the downward slope of the aggregate-demand curve and the significance of the wealth, interest-rate, and exchange-rate effects.

Understand the principles and evidence supporting the matching hypothesis in relationships.

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Definitions:

Mean/Variance

Framework used in finance to assess portfolios by evaluating their expected returns against their risk, measured by variance or standard deviation.

Sharpe Ratio

A measure that indicates the average return minus the risk-free return, divided by the standard deviation of return on an investment, used to understand the return of an investment compared to its risk.

Treynor Measure

A financial metric used to assess the returns of an investment compared to its risk, specifically accounting for systematic risk with the market as a benchmark.

Jensen Alpha

A performance metric that represents the average return on a portfolio or investment above or below that predicted by the capital asset pricing model (CAPM), based on the market risk.