Under the Variable-Ratio Plan, Additional Speculative Investments Are Made When

question 26

Multiple Choice

Under the variable-ratio plan, additional speculative investments are made when the ratio

• A) of conservative investments to speculative investments increases by 10%.
• B) of the rate of return on the speculative investments exceeds the overall market return by 1% or more.
• C) of the realized rate of return falls below the desired rate of return by 1% or more.
• D) of the value of the speculative investments to the total portfolio value drops below a predetermined level.

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Definitions:

Developing Nations

Countries that are in the process of industrialization and have lower per capita income levels compared to developed countries.

Annual Revenues

The total amount of income generated by a business or organization from its activities over the course of a year.

Wal-Mart

A multinational retail corporation that operates a chain of hypermarkets, discount department stores, and grocery stores.

High-income Economies

Countries with a high gross national income per capita, according to classification by international financial institutions like the World Bank.