Which of These Would Be an Example of a Segmented

question 21

Multiple Choice

Which of these would be an example of a segmented markets approach to economic discrimination?

• A) hiring a friend
• B) firing a person for insubordination
• C) requiring that a job candidate be a union member
• D) refusing to hire a qualified job candidate because she has a foreign accent

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Definitions:

Risk Premium

The return in excess of the risk-free rate of return that an investment is expected to yield, compensating investors for taking on additional risk.

Treasury Bills

Short-term government securities issued at a discount from the face value and pay no interest, maturing in one year or less.

Small-company Stocks

Equity investments in companies with smaller market capitalization, often characterized by higher volatility and potential for growth.

Efficient Market

A financial market theory suggesting that asset prices fully reflect all available information at any given time, ensuring that securities are appropriately priced and investors cannot consistently achieve higher-than-average returns.