Suppose a Portfolio Had an Arithmetic Average Return of 8

question 77

Multiple Choice

Suppose a portfolio had an arithmetic average return of 8 percent for a 4-year period.Which one of these statements must be true regarding this portfolio for the period?

• A)At least one of the 4 years produced an annual rate of return of 8 percent.
• B)If the standard deviation of the portfolio is greater than zero,then the geometric average portfolio return is less than 8 percent.
• C)The standard deviation of the portfolio must be lower than the standard deviation of a comparable portfolio that had an arithmetic average return of 9 percent.
• D)If the standard deviation of the portfolio is zero,then the geometric average return must also be zero.
• E)The holding period return must be less than 8 percent.

Recognize the historical and theoretical evolution of Freud's ideas.

Understand the psychodynamic theory of personality and related concepts.

Recognize Freud's contributions and limitations within the field of psychology.

Understand the concept of catharsis and its role in psychoanalytic therapy.

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Definitions:

Incentive Problem

A situation where the motivations of individuals or groups do not align with broader goals or desired outcomes, often leading to inefficiency or conflict.

Communist Central Planning

A system where the government makes all decisions about the production and allocation of goods and services in an economy.

Personal Gain

The benefit or advantage one receives or aims to receive from an action or investment, often measured in terms of financial or personal satisfaction.

Market System

A system of economics where the choices about investment, production, and distribution rely on the principles of supply and demand, and the pricing of goods and services is established freely in the market.