When the Great Depression Reached Its Trough in 1933, Real

question 120

Multiple Choice

When the Great Depression reached its trough in 1933, real GDP had fallen by ________ since the depression began in 1929.

• A) 5%
• B) 10%
• C) 30%
• D) 50%

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Definitions:

Market Portfolio

A theoretical portfolio that contains every asset in the market, weighted by market capitalization.

Security Market Line

A graphical representation of the expected return of investments as a function of their risk, specifically their beta.

Expected Return

The average of all the possible returns for an investment, weighted by their respective probabilities.

Beta

A measure of a stock's volatility in relation to the overall market, used to gauge a stock's risk level relative to the market average.