If the Price Index Is 100 This Year,then

question 135

Multiple Choice

If the price index is 100 this year,then:

• A)there has been no inflation during the year.
• B)the price level is thrice as it was in the base year.
• C)the price level is one hundred times what it was in the base year.
• D)the price level is double what it was in the base year.
• E)the inflation rate has been 100 percent since the base year.

Analyze the impact of news announcements on stock prices and investor reactions.

Understand the principles of diversification and its effects on portfolio risk.

Comprehend the relationship between risk and expected returns on investments.

Recognize the effect of changes in interest rates on the security market line.

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