The Theory of Portfolio Choice Indicates That Factors Affecting the Demand

question 3

Multiple Choice

The theory of portfolio choice indicates that factors affecting the demand for money include

• A)income.
• B)nominal interest rate.
• C)liquidity of other assets.
• D)all the above.

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Definitions:

Genetic Component

The portion of variation in a trait within a population that is attributable to genetic differences among individuals.

Concordance Rates

The statistical measure used in genetics to indicate the likelihood that both individuals in a pair (typically twins) will exhibit the same trait or disorder.

Identical Twins

Twins who develop from a single fertilized egg that splits into two, sharing 100% of their DNA.

Fraternal Twins

Fraternal twins are siblings born at the same time as a result of two different eggs fertilized by two different sperm, sharing about 50% of their genes.