Which Two Indices Had the Highest Correlation Between Them During

question 4

Multiple Choice

Which two indices had the highest correlation between them during the 2014-2018 period?

• A) S&P and DJIA
• B) S&P and Russell 2000
• C) DJIA and Russell 2000
• D) S&P and NASDAQ 100
• E) NASDAQ 100 and DJIA

Analyze the impact of trade on prosperity and how it affects different stakeholders.

Recognize the significance of the production possibilities frontier (PPF) in illustrating economic efficiency and trade-offs.

Differentiate between exports and imports and their roles in international trade.

Identify the historical foundations of modern economic thought related to trade and specialization.

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Definitions:

Financial Risk

The possibility of losing money on an investment or business venture, including market risk, credit risk, liquidity risk, and operational risk.

Variable Cost Ratio

This is a financial metric that represents the variable costs incurred as a percentage of sales, showing how much of each sales dollar is eaten by variable costs.

Degree of Total Leverage

The degree of total leverage measures the sensitivity of a company's net income to a change in sales, combining both operating and financial leverage effects.

Fixed Operating Costs

Expenses that remain constant regardless of the amount of output or sales, including rent, wages, and insurance premiums.