The Following Statement, That the Value of an Investment to an Individual

question 12

Multiple Choice

The following statement, that the value of an investment to an individual is not dependent on consumption preferences, is called the:

• A) marginal rate of substitution.
• B) separation theorem.
• C) value additivity principle.
• D) investor's dilemma.

---

Definitions:

Concept

An abstract idea or a general notion that represents something in the mind of the individual.

Genus

In biology, a rank in the classification hierarchy that is above species and below family, grouping together species that share common characteristics.

Species

A grouping of life forms with similar traits capable of genetic interchange or breeding together.

Organizational Scheme

A structured framework or plan that outlines how certain tasks, information, or elements are arranged and managed within an organization or system.