The Property of Transitivity Refers to Which of the Following

question 35

Multiple Choice

The property of transitivity refers to which of the following?

• A) If voters for one choice feel more strongly than do voters who select another choice,then the aggregation mechanism must be such that the choices are weighted accordingly.
• B) If one choice is preferred by all voters,then the aggregation mechanism must be such that this choice is made by society.
• C) If choice A is preferred to choice B and choice B is preferred to choice C,then A must be preferred to C.
• D) Choices must satisfy the condition that if one choice is preferred to another,then the introduction of a third choice will not change that ranking.

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Definitions:

Fixed Portfolio

An investment strategy where the asset allocation is set for the long term and is not adjusted in response to market conditions.

Mutual Fund

An investment vehicle made up of a pool of funds collected from many investors for the purpose of investing in securities.

Management Fees

Charges levied by an investment manager for managing an investment fund's holdings.

Closed-end Funds

Investment funds with a fixed number of shares, traded on stock exchanges, potentially at prices above or below their net asset values.