Which of the Following Is Correct

question 40

Multiple Choice

Which of the following is correct?

• A) total output = labour productivity/worker-hours
• B) labour productivity = worker-hours/total output
• C) total output = worker-hours × labour productivity
• D) worker-hours = labour productivity × total output

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Definitions:

Separation Property

The property that portfolio choice can be separated into two independent tasks: (1) determination of the optimal risky portfolio, which is a purely technical problem, and (2) the personal choice of the best mix of the risky portfolio and the risk-free asset.

Risky Portfolio

An investment portfolio that contains assets with a higher degree of risk, potentially leading to higher returns or greater losses.

Complete Portfolio

The entire portfolio, including risky and risk-free assets.

Optimal Risky Portfolio

A combination of investments that yields the highest expected return for a specific level of risk.