For Most Developing Nations

question 86

Multiple Choice

For most developing nations

• A) income redistribution can significantly reduce the poverty rate.
• B) economic growth will increase income disparity.
• C) economic growth will reduce income disparity.
• D) poverty can be eliminated with transfers from developed countries.

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Definitions:

Mutual Funds

Investment schemes that are financed by investors, trade in a variety of holdings, and are overseen by professional managers.

Jensen Measure

A performance metric used to evaluate the excess return of an investment portfolio over the predicted return of a risk-adjusted model.

Market Portfolio

A theoretical bundle of investments that includes every type of asset available in the market, with each asset weighted by its total market value.

Sharpe Measure

A method used to evaluate the risk-adjusted return of an investment, comparing the excess return (over a risk-free rate) to the standard deviation of returns.