Marcus Puts a Greater Proportion of His Portfolio into Government

question 160

Multiple Choice

Marcus puts a greater proportion of his portfolio into government bonds.This

• A)increases both risk and the average rate of return
• B)decreases both risk and the average rate of return
• C)increases risk, but decreases the average rate of return
• D)decreases risk, but increases the average rate of return

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Definitions:

World Bank

An international finance organization that extends loans and grants to developing country governments for the execution of infrastructure projects.

Export Promotion

Strategies and policies adopted by a country to encourage the sale of domestic goods and services abroad, aiming to improve the trade balance.

Industrial Production

The measure of output of the industrial sector of the economy, including manufacturing, mining, and utilities.

Foreign Consumers

Individuals or organizations located in one country who purchase goods or services produced in a different country.