The Military-Industrial Complex

question 70

Multiple Choice

The military-industrial complex

• A) consists of an alliance of the military and industry that is pitted against officials in Congress and the executive branch.
• B) suffered a rare defeat in 2009 when funding for additional F-22 fighter jets was rejected by Congress and the president.
• C) was specifically mentioned and condemned in Harry S. Truman's farewell address.
• D) consists of an alliance of the military and industry pitted against officials in Congress and the executive branch; and is blamed for high levels of defense spending.
• E) None of these answers is correct.

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Definitions:

Market Price

The current price at which a service or asset can be bought or sold in the market.

CAPM

CAPM - Capital Asset Pricing Model, a formula used to determine the theoretical return on an investment by relating risk and the expected return, often used in the finance sector for pricing risky securities.

Risk Premium

The additional return that an investor expects to receive for taking on a higher level of risk compared to a risk-free investment.

WACC

Weighted Average Cost of Capital, a calculation that reflects the average rate that a company is expected to pay on its securities, taking into account debt and equity.