The Economic Model of Consumer Decision Making Is Often Rejected

question 32

Multiple Choice

The economic model of consumer decision making is often rejected as ________.

• A) too idealistic
• B) too complex
• C) outdated
• D) irrational
• E) culturally inappropriate

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Definitions:

Positive Expected Return

A projection that an investment will yield a return above the initial outlay.

Risk-Free Arbitrage

The practice of profiting from price differences in different markets or forms without risk.

Benchmark Portfolio

Portfolio against which a manager is to be evaluated.

Well-Diversified

Refers to an investment portfolio that contains a wide variety of assets to minimize risk.