The Distribution of Income for Grim Is as Follows

question 152

Multiple Choice

The distribution of income for Grim is as follows:
If the poverty rate in Grim is 50 percent,what is the poverty line in Grim?

• A) $5,000.
• B) $10,000.
• C) $15,000.
• D) $20,000.

---

Definitions:

Expected Return

The anticipated return on an investment, averaging in the probability of different outcomes.

Optimal Risky Portfolio

A portfolio construction that maximizes expected return for a given level of risk, based on modern portfolio theory.

Risk Free Rate

The theoretical return on investment with zero risk of financial loss, often represented by the yield on government bonds from stable governments.

Standard Deviation

A measure of the dispersion or variability in a set of values, often used to quantify the risk associated with a particular investment.