The "Invisible Hand" Refers to

question 199

Multiple Choice

The "invisible hand" refers to

• A)the marketplace guiding the self-interests of market participants into promoting general economic well-being.
• B)the fact that social planners sometimes have to intervene, even in perfectly competitive markets, to make those markets more efficient.
• C)the equity that results from market forces allocating the goods produced in the market.
• D)the automatic maximization of consumer surplus in free markets.

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; indicating how much a stock’s price might swing.

Portfolio

An assortment of financial assets comprising stocks, bonds, commodities, alongside cash and cash equivalents, as well as closed-end funds and exchange traded funds (ETFs).

Portfolio Beta

A measure that evaluates the risk of an investment portfolio by determining how sensitive it is to market movements.