Economists Tend to

question 83

Multiple Choice

Economists tend to

• A)agree about efficiency and about fairness.
• B)agree about efficiency but disagree about fairness.
• C)disagree about efficiency but agree about fairness.
• D)be more agreeable than philosophers about fairness.
• E)be more disagreeable than philosophers about fairness.

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Definitions:

Risk-free Investment

An investment that is considered to have no risk of financial loss, often represented by government bonds in stable countries.

Beta

Beta is a measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates that the stock is more volatile than the market, while a beta less than 1 suggests it is less volatile.

Expected Return

The weighted average of all possible returns for a given investment, accounting for the likelihood of each outcome.

Average Stock

Average Stock is a metric used to estimate the average amount of inventory a company holds over a certain period of time.