Some Unemployment Is Always Present Due to the ________ and ________

question 105

Multiple Choice

Some unemployment is always present due to the ________ and ________ components, which are greater than zero.

• A) frictional; structural
• B) frictional; cyclical
• C) structural; cyclical
• D) involuntary; frictional

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Definitions:

Expected Returns

The anticipated profit or loss from an investment, based on projections or historical data.

Variances of Returns

A statistical measure of the dispersion of returns for a given security or market index, often used to quantify risk.

Mean-Variance Efficient Portfolio

A portfolio constructed to have the highest possible return for a given level of risk, or equivalently, the lowest risk for a given level of expected return, according to Harry Markowitz's theory.

Firm-Specific Variances

Variability in a firm's stock price or returns that is attributable to factors unique to that firm, as opposed to general market factors.