Good X and Good Y Are Substitutes

question 3

Multiple Choice

Good X and good Y are substitutes.If the price of good Y increases,then the

• A)demand for good X will decrease.
• B)quantity demanded of good X will decrease.
• C)demand for good X will increase.
• D)quantity demanded of good X will increase.

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Definitions:

Expected Market Return

The anticipated average rate of return on an investment portfolio or a market index over a certain period, based on historical data and market conditions.

Risk-Free Rate

The return on an investment with no risk of financial loss, often represented by government bonds.

Beta

A measure of a stock's volatility in relation to the overall market; indicates the relative risk of the investment.

Expected Rate of Return

The profit or loss one anticipates on an investment, considering all potential outcomes and their likelihoods.