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Which of the following is an example of an adverse supply shock?
Macro Factors
Economic, social, political, and environmental variables that affect the performance of the global and regional economy.
Risk Premiums
Additional returns expected by investors for taking on higher risk compared to a risk-free asset, to compensate for the increased uncertainty.
Multifactor Model
A financial model that evaluates securities by considering multiple economic and financial factors to explain market phenomena and/or rates of return.
Expected Return
The mean value of the probability distribution of possible returns from an investment or portfolio.
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