When and Why Did the Great Depression Start

question 5

Multiple Choice

When and why did the Great Depression start?

• A) It began in 1923 when Germany defaulted on its reparations.
• B) It began in 1935 when the WPA was established.
• C) It began in 1929 when the U.S. stock market crashed.
• D) It began in 1931 when Japan invaded Manchuria.

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Definitions:

Weighted Average

A calculation method that multiplies each component by a factor reflecting its importance and sums these products to derive an average.

CAPM

The Capital Asset Pricing Model (CAPM) is a financial model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Expected Return

The weighted average of all possible returns for an investment, taking into account the likelihood of each outcome.

Unsystematic Risk

A type of risk that affects a specific company or industry, distinct from marketwide risks.