Which of the Following Will Shift the Investment Demand Curve

question 100

Multiple Choice

Which of the following will shift the investment demand curve to the right?

• A) The imposition of government regulations that reduce the incentive to produce, for example, more stringent environmental regulation
• B) A decrease in the capacity utilization rate of capital
• C) A decrease in the cost of labor
• D) An increase in GDP

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Definitions:

Beta

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole.

Required Rate Of Return

The minimum annual percentage earnings necessary to attract an investor to a particular investment, considering the risk associated with it.

Standard Deviation

A measure of the dispersion or variability around the mean (average) of a set of data points.

Total Risk

The complete range of risks an investment or project may face, encompassing both systematic (market-wide) and unsystematic (company-specific) risks.