The Economic Policies of Jean-Baptiste Colbert, Louis XIV's Controller General

question 25

Multiple Choice

The economic policies of Jean-Baptiste Colbert, Louis XIV's controller general of finances

• A)were noted for their innovation and originality.
• B)used new accounting practices to take the tax burden off the peasants.
• C)were based on the economic theory of mercantilism.
• D)gave Louis the large surplus in the treasury needed to carry out his wars.
• E)can best be described as capitalist.

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Definitions:

Required Rate Of Return

The minimum annual percentage earnings necessary to attract an investor to a particular investment, considering the risk associated with it.

Standard Deviation

A measure of the dispersion or variability around the mean (average) of a set of data points.

Total Risk

The complete range of risks an investment or project may face, encompassing both systematic (market-wide) and unsystematic (company-specific) risks.

SML

The Security Market Line, a graphical representation of the Capital Asset Pricing Model that plots the expected return of the market at varying levels of systematic or market risk.