Of the Three Agencies That Have Been Created to Promote

question 41

Multiple Choice

Of the three agencies that have been created to promote residential housing,the only one that is an entity of the U.S.government is

• A)Fannie Mae.
• B)Ginnie Mae.
• C)Freddie Mac.
• D)Sallie Mae.

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Definitions:

Capital Market Line

A line used in the capital asset pricing model to illustrate the rates of return for efficient portfolios depending on the risk-free rate and the level of risk (variance).

Forecasted Return

The expected return on an investment based on models of analysis or historical performance data.

Required Return

The minimum expected yield by investors based on the investment’s perceived risk level, influencing investment decisions.

Holding-Period Return

The rate of return over a given period.