Which of the Following Is False

question 18

Multiple Choice

Which of the following is false?

• A)The supply of land is fixed.
• B)When the demand for a plot of land rises,its supply will rise.
• C)Land is most efficiently used in cities.
• D)The rent on a particular piece of land is based on the MRP schedule of the highest bidder.

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Definitions:

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio in comparison to the market as a whole, indicating how much the investment’s value is expected to fluctuate.

Expected Return

The weighted average of all possible returns for a given investment, where the weights are the probabilities of each outcome, representing an anticipation of gains on an asset.

Market Risk Premium

The additional return over the risk-free rate that investors require to compensate them for the extra risk of investing in the stock market.

Fairly Priced

A term suggesting an asset is trading at a price close to its intrinsic value, considering its earnings, growth potential, and risk.