The 5 Percent Clause Means That a Party Must

question 29

Multiple Choice

The 5 percent clause means that a party must

• A) have the support of 5 percent of registered voters to be an official party.
• B) have 5 percent minority membership.
• C) win 5 percent of the seats in the Bundestag to be part of the governing coalition.
• D) win 5 percent of the vote to be awarded seats in the Bundestag.
• E) win 5 percent of the vote to be awarded public financing in the next election.

---

Definitions:

Risk-Free Asset

An investment with a guaranteed return and no risk of loss, often exemplified by government bonds of stable countries.

Risky Asset

An investment that holds some risk of losing value, as opposed to a guaranteed or risk-free asset, offering potentially higher rewards in exchange for higher risk.

Expected Return

The weighted average of the probable returns of an investment, where the weights correspond to the probability of each outcome.

Standard Deviation

A metric that quantifies the spread of a dataset around its mean, determined by taking the square root of the variance.