In Figure 33

question 33

Multiple Choice

In Figure 33.1,suppose that the Gini coefficient for Omega is 0.55.The Gini coefficient for Alpha must be

• A)Less than 0.55.
• B)Equal to 0.55.
• C)Greater than 0.55.
• D)0.45.

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Definitions:

Compounded Monthly

A method where interest is added to the principal every month, allowing the interest to earn interest in subsequent months.

Compounded Semi-Annually

The process of calculating interest where the interest is added to the principal sum of a loan or deposit twice a year.

Mutual Fund

A type of investment vehicle consisting of a portfolio of stocks, bonds, or other securities, which is managed by an investment company with the capital pooled from many investors.

Rate of Total Return

A measure of the gain or loss on an investment over a specified period, including interest, capital gains, dividends, and distributions realized over the period.