The Buying and Selling Activities That Tend to Equalize the Rates

question 134

Multiple Choice

The buying and selling activities that tend to equalize the rates of return on identical or nearly identical assets is called

• A)beta.
• B)risk.
• C)arbitrage.
• D)diversification.

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Definitions:

Real GDP

Measures the value of all goods and services produced by an economy, adjusted for inflation, to reflect the actual economic output.

National Income

The total value of all goods and services produced by a country's economy over a specific period, after adjustments for income from foreign investments and payments to other countries.

Corporate Profits

The excess of revenues over expenses for corporations, indicating the financial health and performance of companies.

Depreciation

A method of allocating the cost of a tangible asset over its useful life.