Table 63: Population and Labor Force What Is the Unemployment Rate in Year 5 in Table

question 65

Multiple Choice

Table 6.3: Population and Labor Force $\begin{array} { | l | c | r | } \hline & \text { Year 1 } & \text { Year 5 } \\\hline \text { Working Age Population } & 200 \mathrm { million } & 250 \mathrm { million } \\\hline \text { Labor Force } & 110 \mathrm { milli } \mathrm { on } & 145 \mathrm { million } \\\hline \text { Employed } & 106 \mathrm { milli on } & 135 \mathrm { million } \\\hline\end{array}$ What is the unemployment rate in Year 5 in Table 6.3?

• A)7.4 percent.
• B)6.9 percent.
• C)4.0 percent.
• D)54.0 percent.

---

Definitions:

CAPM

A financial theory that calculates the expected return on an investment based on its risk relative to the market as a whole.

Expected Rate

The anticipated return on an investment, considering potential risks and historical returns.

Security's Beta

A measure of a security's volatility in relation to the overall market, indicating the risk associated with the investment.

Security Market Line

A graphical representation that shows the expected return of an asset at different levels of systematic, or market, risk.