As the Value of the Gini Coefficient Approaches Zero

question 47

Multiple Choice

As the value of the Gini coefficient approaches zero

• A)income distribution becomes less unequal.
• B)income distribution becomes more unequal.
• C)the percentage of the population under the poverty line increases.
• D)the percentage of the population under the poverty line decreases.

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Definitions:

Risk Profile

An evaluation of an individual's willingness and ability to take risks, as well as the risks associated with their investment assets.

Performance Evaluation

The assessment of how investments or portfolios have performed over time, considering factors like return, risk, and comparison to benchmarks.

Mispricing

The occurrence when the market price of a security does not accurately reflect its intrinsic or theoretical value, leading to potential buying or selling opportunities.

Futures Contract

Obliges traders to purchase or sell an asset at an agreed-upon price on a specified future date. The long position is held by the trader who commits to purchase. The short position is held by the trader who commits to sell. Futures differ from forward contracts in their standardization, exchange trading, margin requirements, and daily settling (marking to market).