The Expected Return of a Portfolio of Two Investments Will

question 123

True/False

The expected return of a portfolio of two investments will be equal to the sum of the expected returns of the two investments plus twice the covariance between the investments.

Evaluate the effects of changes in the supply and demand for loanable funds on the interest rate.

Assess the role of inflation in economic decisions and contracts.

Identify strategies for individuals and businesses to mitigate the effects of inflation.

Understand how pension programs and employment contracts can adjust to changes in the price level.

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Definitions:

Indifference Schedule

A table or graph that shows a combination of two goods that give a consumer equal satisfaction and utility, illustrating consumer preferences.

Units of X

A term often used in economics to denote a quantity of a particular good or service being considered.

Data

Information, especially facts or numbers, collected to be examined and considered and used to help decision-making.