Suppose You Have an Asset with a Return That Rises

question 99

Multiple Choice

Suppose you have an asset with a return that rises as GDP increases. If the government announces that GDP is unexpectedly higher than was previously thought, how will the asset's return be affected by the announcement?

• A) The return will increase.
• B) The return will remain unchanged.
• C) The return will decrease.
• D) It is undetermined and more information is needed.

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Definitions:

Hoarding Information

The practice of keeping valuable information to oneself, often to maintain power or advantage.

Disposition-based

Pertains to characteristics or tendencies inherent in an individual that influence behavior or attitudes.

Trust

The firm belief in the reliability, truth, ability, or strength of someone or something, often seen as foundational in relationships and organizations.

Chain of Command

A system in organizations where authority and commands flow downward from the top through a series of executive positions or military ranks where each person is responsible to a superior.