Which of the Following Is Correct with Regard to Treaties

question 47

Multiple Choice

Which of the following is correct with regard to treaties in the United States legal system?

• A) They have no legal effect.
• B) Under the U.S.Constitution they must be signed by the President and approved by the U.S.Senate.
• C) They have no effect on business law.
• D) They must be approved by the States before they have the force of law.

Grasp the principles of diversification and its impact on portfolio risk.

Recognize the definitions and calculations of key investment metrics including beta, standard deviation, risk premium, and expected returns.

Interpret the Capital Asset Pricing Model (CAPM) and its implications for investment valuation.

Distinguish between systematic risk, unsystematic risk, total risk, and their relevance to portfolio management.

---

Definitions:

Marginal Benefit

Benefit from the consumption of one additional unit of a good.

Incentivized

Encouraged or motivated through the offering of incentives or rewards to perform a particular action or behavior.

Recession Of 2008

A severe global economic downturn triggered by the collapse of the housing market and financial institutions, leading to widespread job losses and economic instability.

Housing Bubble

A situation in the real estate market where house prices are driven to levels way beyond their true values due to excessive demand, speculation, or unsustainable economic factors, eventually leading to a sharp decline.