Which of the Following Is Used to Calculate the Standard

question 19

Multiple Choice

Which of the following is used to calculate the standard of living?

• A) the one-third rule
• B) real GDP in the current year - real GDP in previous year)/real GDP in previous year) x 100
• C) real GDP/population
• D) real GDP/aggregate hours

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Definitions:

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments to shareholders.

T-Bill Rate

The yield or interest rate paid to investors of U.S. Treasury bills, a short-term government security.

SML

The Security Market Line, a representation in the Capital Asset Pricing Model (CAPM) that shows the expected return of a security or portfolio as a function of its systematic risk.

Expected Return

The anticipated amount of profit or loss an investment generates over a given period of time.