Between 1981 and 1988, What Caused Most of the Change

question 66

Multiple Choice

Between 1981 and 1988, what caused most of the change in Canadian net capital outflow as a percent of GDP?

• A) decrease in Canadian investment
• B) decrease in Canadian national saving
• C) increase in Canadian investment
• D) increase in Canadian national saving

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Definitions:

Diversified Portfolio

An investment strategy that involves spreading investments across various asset classes to reduce risk and volatility.

Capital Market Line

A line used in the capital asset pricing model to illustrate the rates of return for efficient portfolios depending on the risk-free rate and the level of risk (variance).

Forecasted Return

The expected return on an investment based on models of analysis or historical performance data.

Required Return

The minimum expected yield by investors based on the investment’s perceived risk level, influencing investment decisions.