A Primary Belief in the Mercantile System Was That ______________

question 88

Multiple Choice

A primary belief in the mercantile system was that ______________.

• A) merchants and traders should control the economy
• B) there was only a limited amount of wealth in the world and amassing it meant power
• C) the wealth of a state was the personal property of its Sovereign
• D) slavery was necessary to yield a profit
• E) social mobility was possible with economic increase

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Definitions:

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs, held by an individual or an institution.

Risk Aversion

The preference to avoid uncertainty and potential loss in investment decisions, favoring safer or less volatile investments.

Historical Standard Deviation

It measures the variability or dispersion of historical returns of an investment around its average return over a certain period, indicating the investment's risk level.

Expected Return

The predicted average return on an investment calculated by adding together all possible returns weighted by the likelihood of each occurring.