Adam Smith's Behavioural Assumption About Humans Was That People

question 44

Multiple Choice

Adam Smith's behavioural assumption about humans was that people:

• A)typically act irrationally.
• B)usually act in a rational, self-interested way.
• C)are consistently greedy.
• D)typically act randomly.

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Definitions:

Quarterly Dividends

Dividends paid by a corporation to its shareholders every quarter of the fiscal year.

Shares

Units of ownership interest in a corporation or financial asset, providing a share in the company's profits and losses.

Geometric Average Returns

A method of calculating the average rate of return of a set of values that accounts for the effects of compounding, useful for assessing the performance of investments over time.

Returns

The profits or losses generated by an investment over a specific period, often expressed as a percentage of the initial investment cost.