An Expansion Occurs When the Level of Real GDP Is

question 89

Multiple Choice

An expansion occurs when the level of real GDP is

• A) at a cyclical trough.
• B) increasing.
• C) at a cyclical peak.
• D) decreasing.

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Definitions:

Required Return

The minimum expected rate of return on an investment necessary to compensate for the risk of the investment.

Beta

A measurement of the volatility of a stock or portfolio compared to the market as a whole.

Constant Rate

A fixed percentage or value used in calculations that does not change over the period in question.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates that the stock is more volatile than the market.