Which of the Following Variables Was Considered not Significant in Explaining

question 55

Multiple Choice

Which of the following variables was considered not significant in explaining stock returns?

• A) Industrial production
• B) Changes in the risk premium
• C) Consumption
• D) Twists in the yield curve
• E) Inflation

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Definitions:

Present Value

The present worth of a sum of money or a series of cash flows expected in the future, assuming a certain rate of return.

Compounded Annually

A method of calculating interest where the interest rate is applied once per year, and each year’s interest calculation includes the interest from the previous years.

Annual Rents

Regular payments made for the use of property or land over a yearly basis.

Compound Interest Tables

Reference tables used to find the amount of compound interest earned or payable over a period of time, based on various rates and compounding frequencies.