Which of the Following Is True

question 502

Multiple Choice

Which of the following is true?

• A) In 1916, the per person real government expenditures were approximately 60 times greater than in 1800.
• B) Prior to 1929, government expenditures at the state and local levels were substantially smaller than federal expenditures.
• C) Real federal spending per person was approximately 80 times greater in 2010 than in 1916.
• D) All of the above are true.

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Definitions:

Nonsystematic Variance

The portion of an investment's variance that is due to factors specific to its issuer and not related to wider market movements.

Market Index

An indicator used to represent the performance of specific sectors or the market as a whole, often compiled from a set of selected stocks.

Active Portfolio

A portfolio that undergoes frequent trading and adjustments by a manager in an attempt to outperform the market or a specific benchmark.

Treynor-Black Model

A portfolio optimization model that blends a passive and an active portfolio for potential risk-adjusted returns superior to the market.