Which Statement Best Describes the Effect of the Great Depression

question 26

Multiple Choice

Which statement best describes the effect of the Great Depression on U.S.growth?

• A) The Great Depression reversed all growth that had been experienced over the previous 100 years.
• B) The U.S. economy grew at the same rate during the Great Depression as during the rest of the twentieth century.
• C) The Great Depression temporarily reversed U.S. growth, but the U.S. economy grew steadily before and after it.
• D) The Great Depression led to slow growth in the U.S. for the following 50 years.

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Definitions:

Form

A specific type of document or report required by regulatory agencies for various financial filings and disclosures.

CAPM

The Capital Asset Pricing Model, a theory used to determine the expected return on investment by correlating the risk and the non-diversifiable risk of the market.

Treynor Measures

A performance metric that assesses the returns earned on a portfolio in excess of the risk-free rate, adjusted for market risk.

Sharpe

A ratio used to calculate the risk-adjusted return of an investment, comparing the excess return of the investment to its standard deviation of returns.