Condorcet explained his paradox in a 1951 book called Social Choice and Individual Values

According to economists of the rational expectations school, _____

a. the passive approach must be adopted because they believe the economy is too complex b. individual forecasts about policies can never be right c. anticipated monetary policy can affect the output level d. discretionary policy can stabilize the economy e. discretionary policy should be completely avoided

If two investments, X and Y, have the same expected return an individual investor would prefer:

a. the one with a higher standard deviation. b. the one with a higher mean. c. the one with a lower correlation coefficient. d. the one with a lower variance.