Prior to the Early 1990s, Why Was South Africa Generally

question 14

Multiple Choice

Prior to the early 1990s, why was South Africa generally NOT considered a democratic nation?

• A)South Africa had a hereditary monarch.
• B)South Africa was ruled by a military general.
• C)South Africa operated a system of apartheid.
• D)South Africa prevented women from voting.
• E)South Africa lacked a national constitution.

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Definitions:

CAPM (Capital Asset Pricing Model)

A financial model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Market Risk

The risk of losses in investments caused by factors that affect the entire market, such as economic recession or political instability.

Treasury Bonds

Long-term government bonds issued by the Treasury Department with maturity periods typically longer than 10 years.

Beta Coefficient

The beta coefficient measures the volatility of a stock or portfolio in comparison to the market as a whole, indicating its relative risk.