A Large Portion of Foreign Aid from IACs to DVCs

question 247

Multiple Choice

A large portion of foreign aid from IACs to DVCs is provided on the basis of

• A) economic considerations.
• B) geographical considerations.
• C) humanitarian considerations.
• D) political and military considerations.

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Definitions:

Risk Aversion

The tendency of investors to avoid unnecessary risk, preferring safer investments over riskier ones for the same expected return.

Capital Asset Pricing

A model that describes the relationship between the expected return of an investment and the risk, or beta, relative to the market.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification.

Security Market Line

A representation in financial markets of the relationship between risk and expected return, used in the Capital Asset Pricing Model.