Which of the Following Is the Correct Ordering If We

question 145

Multiple Choice

Which of the following is the correct ordering if we want to rank the four spending shares of U.S. GDP in 2015 in descending (from highest to lowest) order?

• A)Consumption, government purchases, investment, net exports
• B)Consumption, investment, government purchases, net exports
• C)Government purchases, consumption, investment, net exports
• D)Consumption, government purchases, net exports, investment
• E)Consumption, investment, net exports, government purchases

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Definitions:

Beta

A metric used in finance to determine an investment's volatility or risk as compared to the overall market.

Portfolio Variance

A measure of the dispersion of returns of a portfolio, indicating the degree of investment risk.

Coefficient of Correlation

A statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 to 1.

Risky Securities

Risky securities are investment products that come with a higher degree of uncertainty regarding their future value or return, often offering potentially higher rewards to compensate for the increased risk.