Recessions Begin at ________ and End at ________

question 14

Multiple Choice

Recessions begin at ________ and end at ________.

• A)the highest unemployment rate; the lowest unemployment rate
• B)the lowest unemployment rate; the highest unemployment rate
• C)a peak; a trough
• D)a trough; a peak

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Definitions:

Internal Rate of Return

The discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Beta

A gauge of the variability in a stock's price relative to the whole market.

Risk-Free Rate

The anticipated rate of return on an investment devoid of risk, commonly represented by the interest rates of government bonds.

Market Risk Premium

The extra return expected by investors for holding a risky market portfolio instead of risk-free assets, reflecting the additional risk.