Refer to the Accompanying Data

question 70

Multiple Choice

$$\begin{array} { | l | c | } \hline \text { Proprietors' Income } & \$ 20 \\\hline \text { Compensation of Employees } & 300 \\\hline \text { Consumption of Fixed Capital } & 15 \\\hline \text { Gross Investment } & 80 \\\hline \text { Rents } & 10 \\\hline \text { Interest } & 20 \\\hline \text { Exports } & 30 \\\hline \text { Imports } & 50 \\\hline \text { Corporate Profits } & 25 \\\hline \text { Taxes on Production and Imports } & 5 \\\hline \text { Net Foreign Factor Income } & 0 \\\hline \text { Statistical Discrepancy } & 0 \\\hline\end{array}$$ Refer to the accompanying data. All ?gures are in billions of dollars. National income is

• A) $395.
• B) $380.
• C) $375.
• D) $360.

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Definitions:

Unsystematic Risk

The risk of price changes in a company's stock due to factors specific to the company, as opposed to market-wide factors.

Treasury Bills

Short-term U.S. government debt obligations maturing in one year or less, considered a safe and liquid investment.

Risky Portfolio

A collection of investments that has a higher standard deviation, but potentially higher returns.

Unsystematic Portion

The segment of risk in an investment portfolio that can be mitigated through diversification, specific to individual securities.