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:

Distance-Matrix Method

A distance-matrix method is a procedure for constructing phylogenetic trees by clustering taxa based on the proximity (or distance) between their DNA or protein sequences. These methods place closely related sequences under the same internal branch, and they estimate branch lengths from the observed distances between sequences.

Maximum Parsimony

Maximum parsimony is a statistical method for reconstructing phylogenies that identifies the tree topology that minimizes the total amount of change, or the number of steps, required to fit the data to the tree.

Introgression

Introgression describes the movement of alleles from one species or population to another.

Incomplete Lineage Sorting

Occurs when a genetic polymorphism persists through several speciation events. When fixation of alternative alleles eventually occurs in the descendent species, the pattern of retention of alleles may yield a gene tree that differs from the true phylogeny of the species.