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Author Question: Refer to Scenario 16.2. Is the current distribution Pareto optimal? A) Yes. B) No, as Sam could ... (Read 53 times)

mynx

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on: Jul 1, 2018
Refer to Scenario 16.2. Is the current distribution Pareto optimal?
 
  A) Yes.
  B) No, as Sam could trade Sally a piece of candy for a tee shirt and both people would be better off.
  C) No, as Sam could trade Sally a tee shirt for a piece of candy and both people would be better off.
  D) Without the prices of each commodity it is impossible to determine if this distribution is Pareto optimal.

Question 2

Refer to Scenario 5.10. If Hillary invests 30 percent of her savings in the real estate project and remainder in Treasury bills, the standard deviation of her portfolio is:
 
  A) 0 percent.
  B) 12 percent.
  C) 28 percent.
  D) 30 percent.
  E) 40 percent.


Hdosisshsbshs

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Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

B


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