State and Local Politicians Tend to Apply New and Increased

question 14

True/False

State and local politicians tend to apply new and increased taxes to taxpayers who are nonresident visitors to the jurisdiction, such as a tax on auto rentals and hotel stays, because the taxpayer cannot vote to reelect (or oust) the lawmaker.

---

Definitions:

Total Risk

The overall uncertainty associated with an investment decision, encompassing both systematic and unsystematic risk.

CAPM

Capital Asset Pricing Model; a formula used to determine the expected return on an investment, factoring in its risk relative to the market.

Risk-to-reward Ratio

A measure used by investors to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.