A Congresswoman Is Explaining That She Occasionally Votes for Bills

question 23

Multiple Choice

A congresswoman is explaining that she occasionally votes for bills that need, but do not contain, provisions for funding because:

• A) appropriations bills are usually considered in specific years.
• B) once the bill has passed, it is often easier to find funding for it.
• C) she can support the cause without having to find money for it.
• D) there isn't enough money left in the budget for some issues.

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Definitions:

CAPM

The Capital Asset Pricing Model, a formula that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Expected Return

The anticipated or forecasted return on an investment based on historical or projected performance data.

Systematic Risk

The risk inherent to the entire market or market segment, also known as non-diversifiable risk or market risk.

Market Risk Premium

The higher return an investor foresees from investing in a market portfolio with associated risks as opposed to choosing completely safe assets.