Subject to a Few Legal and Practical Restrictions,anything May Be

question 66

Multiple Choice

Subject to a few legal and practical restrictions,anything may be exchanged for anything else.The distinctive advantage of money is that ________.

• A)it is likely to retain its value,whether it is kept or exchanged
• B)it has little,if any,use other than exchange
• C)it can generate income while it is kept
• D)it is likely to be accepted by everyone in exchange for anything
• E)none of the above

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Definitions:

Treynor Measure

A performance metric for determining how well an investment portfolio has compensated the investor for taking risk, adjusted for market volatility.

Standard Deviation

A measure of the dispersion or variability in a set of data points, often used in finance to indicate the volatility of an investment.

Beta

An indicator of the level of fluctuation, or inherent risk, of an investment or group of investments relative to the overall market.

Dollar-Weighted Return

A method of calculating an investment's return that takes into account the timing and amount of cash flows into and out of the investment.