If an asset has a risk-return combination that is above the Security Market Line (SML), then arbitrage will make that asset's:

Adam Smith argued that each person in a competitive market is led to promote the

A) efficient use of society's resources, because each person's intention is to make society better off. B) efficient use of society's resources, even though it is no person's intention to make society better off. C) inefficient use of society's resources, even though each person's intention is to make society better off. D) inefficient use of society's resources, because it is no person's intention to make society better off.

Which of the following would show the LEAST amount of inequality?

A) Measured annual income. B) Measured annual wealth. C) Lifetime income. D) Measured annual income and annual wealth are equally distributed and are more equally distributed than lifetime wealth.