A Pure Private Good Is Such That

question 99

Multiple Choice

A pure private good is such that

• A)Rivalry holds but exclusivity does not.
• B)Both rivalry and exclusivity hold.
• C)Exclusivity holds but rivalry does not.
• D)Neither rivalry nor exclusivity hold.

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Definitions:

Geometric Average Return

The average rate of return per period on an investment, calculated geometrically to account for compounding effects.

Arithmetic Average Return

The sum of all returns in a series divided by the number of returns, used to calculate the average performance of an investment over time.

Complete Portfolio

A combination of a risk-free asset and one or more risky assets, structured to meet the investor's risk-return objectives.

Risk-Free Asset

An asset which is assumed to have no risk of financial loss and typically refers to government bonds or bills.