If New Technologies Are Not Developed, the Catch-Up Effect Tends

question 87

True/False

If new technologies are not developed, the catch-up effect tends to slow over time.

---

Definitions:

Alpha

A performance measure indicating the excess return of an investment relative to the return of a benchmark index or risk-free rate.

Risk-Free Rate

The return on an investment with no risk of financial loss, often represented by government bonds.

Annualized Return

A rate of return that standardizes an investment's earnings to a one-year period, making comparison with other investments easier.

Holding Period

The length of time an investment is held by an investor before being sold.