Which of the Following Is Not a Basic Assumption Underlying

question 76

Multiple Choice

Which of the following is not a basic assumption underlying the theory of consumer behavior?

• A)Consumers prefer more to less.
• B)Consumer preferences depend on the amounts of goods they consume as well as the amounts being consumed by other consumers.
• C)Goods are continuously divisible, that is, consumers can always purchase one more or one less unit of a good.
• D)Consumers have well-behaved preferences, that is, preference orderings are complete.

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Definitions:

International Stocks

Shares of companies based outside of an investor's home country, offering diversification benefits.

Portfolio Risk

The potential for loss due to the variability of returns from the various securities in a portfolio.

Expected Return

The anticipated return on an investment, based on historical data or probability analysis, over a specific period.

Effective International Diversification

A strategy of investing across various countries and asset classes to reduce risk and potentially enhance returns.