Which of the Following Requirements Must Be Met to Allow

question 454

Multiple Choice

Which of the following requirements must be met to allow new construction in a prevention of significant destruction area:

• A) the owner must agree to install the best available control technology-as determined by the EPA-on the new plant to control its air pollution
• B) the owner must show that the pollution from its plant will not cause the maximum allowable increase in the area to be exceeded
• C) the owner must show how the plant will be economically beneficial to the area
• D) both a and b are required
• E) a, b, and c are required

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Definitions:

Market Proxy

A singular asset or portfolio that represents the characteristics of an entire market segment or the market as a whole.

CAPM

The Capital Asset Pricing Model, which describes the relationship between systematic risk and expected return for assets, particularly stocks, suggesting that investors need to be compensated in two ways: time value of money and risk.

Fama and French

Scholars who developed a three-factor model for explaining the risk and return of stocks and other investments.

Econometrics

The application of statistical and mathematical theories to economics for the purpose of testing hypotheses and forecasting future trends.