Identify the Property Illustrated by the Statement

question 356

Multiple Choice

Identify the property illustrated by the statement. Assume all variables represent real numbers.
-(2 ∙ 5) ∙ 8 = 2 ∙ (5 ∙ 8)

• A) Distributive
• B) Commutative
• C) Identity
• D) Associative

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Definitions:

CAPM

Capital Asset Pricing Model; a model that describes the relationship between systematic risk and expected return for assets.

Holding Period

The duration of time an investment is held before it is sold, impacting the capital gains tax implications.

Risk Aversion

A preference to minimize uncertainty and avoid risk in investment decisions.

Systematic Risk

The inherent risk that affects the entire market or a wide range of securities, often caused by factors like economic, political, or global events, and cannot be mitigated just by diversification.