Which of the Following Actions Would Be Unlikely to Increase

question 53

Multiple Choice

Which of the following actions would be unlikely to increase GDP?  

• A) Tom's alarm clock breaks, so he buys a new one. 
• B) Tom buys a second alarm clock because he routinely sleeps through the alarm of his current clock. 
• C) Tom oversleeps in the morning because his alarm clock is broken, causing him to buy a cup of coffee on the way to work because he has no time to make his own at home. 
• D) Tom's alarm clock breaks, which leads to him being unemployed because he gets fired from his job for being late to work so often.

---

Definitions:

Covariances

A measure indicating the extent to which two variables change in tandem over time.

Well-Diversified Portfolio

A collection of investments that spans various assets to minimize risk while maximizing returns.

Single Index Model

A simplified model to estimate the return of a security based on the return of the market as a whole and the security's sensitivity to the market.

Portfolio's Sigma

A statistical term that represents the standard deviation of returns of an investment portfolio, reflecting its risk.