If a Federal Agency Requested Funds to Build a Dam

question 105

Multiple Choice

If a federal agency requested funds to build a dam on an Idaho river to irrigate nearby farmland used for growing potatoes, the most active support for the project probably would come from

• A) potato farmers who own land that wouldn't be irrigated by the project.
• B) taxpayers who would pay for the project.
• C) consumers of potatoes who might benefit from an expansion in supply and slightly lower potato prices.
• D) potato farmers who own the land to be irrigated.

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Definitions:

Market Beta

A measure of the volatility of a security or a portfolio in comparison to the market as a whole.

Explanatory Power

The ability of a statistical model to account for the variability of a given data set, explaining how well the model represents the data observed.

Fama and French

Economist researchers known for their development of a three-factor model to explain stock returns based on market risk, size, and book-to-market value factors.

Firm Size

A measure of a company's size, often determined by its market capitalization, number of employees, or total assets.