Macro Events Only Are Reflected in the Performance of the Market

question 3

Multiple Choice

Macro events only are reflected in the performance of the market portfolio because:

• A) the market portfolio has no individual firms.
• B) only macro events are tracked by economists.
• C) unique risks have been diversified away.
• D) firm-specific events would be too numerous to list.

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Definitions:

Past Discrimination

Refers to historical instances where individuals or groups were treated unfairly or prejudiced against based on characteristics such as race, gender, religion, or nationality.

Gender Wage Gap

The average difference in earnings between women and men in the workforce, often highlighted as a measure of gender inequality.

Efficiency Wages

A theory suggesting that higher wages can enhance worker productivity by increasing morale, reducing turnover, and attracting more skilled employees.

Human Capital

The skills, knowledge, and experience possessed by an individual or workforce, viewed in terms of their value or cost to an organization.