Is a System of Government in Which Power Is Divided

question 24

Multiple Choice

is a system of government in which power is divided between a central authority and constituent political units.

• A) Federalism
• B) Communism
• C) Despotism
• D) Totalitarianism

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Definitions:

Required Return

The minimum rate of return on an investment that is necessary for an investor to consider making that investment.

Market Risk

The risk of losses in positions arising from movements in market prices.

Diversify

The strategy of spreading investments across various financial assets, industries, or other categories to reduce risk.

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks; it is used to estimate the cost of equity.