The Old Adage That "A Bird in the Hand Is

question 94

Multiple Choice

The old adage that "a bird in the hand is worth two in the bush" refers to

• A)a normal good
• B)opportunity cost
• C)scarcity
• D)a positive rate of time preference
• E)a willingness to forgo current consumption in order to achieve increased future consumption

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Definitions:

Treynor Measure

A performance metric for determining how well the returns of an investment compensate the investor for taking a risk, adjusting for market volatility.

S&P 500 Index

A market-capitalization-weighted index of the 500 largest U.S. publicly traded companies and is considered one of the best representations of the U.S. stock market.

Sharpe Measure

A metric for calculating risk-adjusted return, measuring excess return per unit of deviation in an investment.

S&P 500 Index

A stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States, often used as a gauge of the overall health of the US stock market.