The Social Welfare Function

question 39

Multiple Choice

The social welfare function

• A) Summarizes judgments about resource allocations
• B) Assigns a number that indicates the overall level of social welfare
• C) Was pioneered by Abram Bergson and Paul Samuelson
• D) All of these

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Definitions:

Eugene Fama

An American economist and Nobel laureate known for his work on the efficient-market hypothesis.

Risk-Adjusted Performance

A measure of how much risk is involved in producing a financial return, used to compare the performance of investment portfolios.

Comparison Universe

A benchmark or pool of investments used to evaluate the performance of a specific investment or portfolio.

Mutual Funds

Professionally managed investment initiatives that are bankrolled by stockholders and trade across assorted holdings.