By the End of the War for Independence

question 59

Multiple Choice

By the end of the War for Independence

• A) the majority of Americans supported independence with selfless devotion.
• B) America had an army larger than Britain's.
• C) the American military no longer needed foreign assistance.
• D) a few thousand American regular troops were finally whipped into shape.
• E) America had built a strong navy.

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Definitions:

Diversifiable Risk

A type of investment risk that can be reduced or eliminated in a portfolio through diversification, as it is not correlated with market movements.

Risk Premium

The extra return expected by an investor for holding a risky asset, over and above the risk-free rate.

Discount Rate

The interest rate used in calculating the present value of future cash flows. It reflects the time value of money and risk.

Real Interest Rate

The interest rate that has been adjusted to remove the effects of inflation, reflecting the real cost of funds to the borrower and the real yield to the lender or investor.