The Glass Steagall Restrictions Separating Investment and Commercial Banking Were

question 19

True/False

The Glass Steagall restrictions separating investment and commercial banking were finally repealed in 1999 by Financial Services Modernization Act.

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Definitions:

Sharpe's Measure

A metric used to evaluate the risk-adjusted return of an investment, calculating the excess return per unit of deviation in an investment.

Risk-Free Return

The return on investment that is guaranteed, with no risk of financial loss.

Wildcat Fund

An investment fund that takes higher risks in anticipation of higher rewards, often investing in unproven sectors or speculative ventures.

Information Ratio

A measure of portfolio returns beyond the returns of a benchmark, relative to the volatility of those excess returns.