Each Person Who Is 16 Years or Older Is Considered

question 167

Multiple Choice

Each person who is 16 years or older is considered to be in one of the following categories:

• A)employed, unemployed, or discouraged worker.
• B)part-time worker, full-time worker, or unemployed.
• C)part-time worker, full-time worker, or out of the labor force.
• D)employed, unemployed, or out of the labor force.

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Definitions:

Market Risk Premium

The extra return expected by investors for taking on the risk of investing in the stock market over a risk-free rate.

Security Market Line

A line representing the relationship between the expected return of a market security and its risk, as measured by beta.

Systematic Risk

The collective risk for all investments in a market or a specific part of the market that cannot be offset through diversification.

Unsystematic Risk

The danger linked to a certain company or sector that can be reduced by spreading investments across a varied portfolio.