Use the Following to Answer Questions

question 133

Multiple Choice

Use the following to answer questions .
Exhibit Real GDP and Employment

-(Exhibit: Real GDP and Employment) The exhibit shows data on real GDP and employment for a particular country from the year 1991 to 2000. The peak(s) in economic activity occurred:

• A) once in the ten-year period, in 1999.
• B) twice in the ten-year period, in 1998 and in 1999.
• C) once in the ten-year period, in 1994.
• D) twice in the ten-year period, in 1994 and in 1999.

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Definitions:

Total Risk

The complete spectrum of all types of risk that an investment or project could potentially face, including both systematic and unsystematic risks.

Expected Return

The expected return is the average return expected on an investment over a period.

Securities

Tradable financial instruments intended to provide returns to investors, which include equities, bonds, and options.

Portfolio

A collection of investments held by an individual or an institution, which may include stocks, bonds, and other assets.