When More Than One Person Is Responsible for Getting Something

question 36

Multiple Choice

When more than one person is responsible for getting something done,the incentive is for each individual to shirk responsibility in the hope that the others will pull the extra weight.This is referred to as:

• A) Communist ideology.
• B) Marxism.
• C) the balanced principle.
• D) the free rider problem.

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Definitions:

Market's Volatility

The degree of variation of a trading price series over time, often measured by the standard deviation of returns.

Value Line Index

An index which represents the performance of stocks in the market, aiming to include a broad spectrum of companies across different industries.

Geometric Average

The nth root of the product of n numbers. It is used to measure the compound rate of return over a given sample period.

Equally-Weighted

An investment strategy where each asset in a portfolio is given the same weight or importance.