In the Calculation of Gross Domestic Product by the Expenditure

question 28

Multiple Choice

In the calculation of gross domestic product by the expenditure approach, the ʺinvestmentʺ
Component is

• A) gross investment.
• B) gross investment minus depreciation.
• C) gross investment plus depreciation.
• D) net investment.

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Definitions:

Standard Deviation

A measure of the dispersion or variance in a distribution of data points, indicating how spread out the data is from its mean.

Average Return

The arithmetic mean of a series of returns generated over a period of time.

Market Risk Premium

The additional return that an investor requires for choosing a risky market investment over a risk-free investment.

Beta

A measure of a stock's volatility in relation to the overall market, used to gauge the risk associated with a particular investment.