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Robert Is Taking a Black History Class

question 76

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Robert is taking a black history class.He learned that the one-drop rule labeled anyone who had a black ancestor as black.He concluded,based on this definition,that this was a racist rule.What is the best explanation as to why Robert would arrive at that conclusion?


Definitions:

Expectations Theory

A theory that explains the term structure of interest rates based on the anticipation that the rates will move toward the average rate over the long term.

Yield Curve

A graph showing the relationship between bond yields and their maturities, often used to predict changes in economic output and interest rates.

Risk Premiums

Additional returns expected by investors for taking on additional risk compared to a risk-free investment.

Risk-Free Rate

The return on an investment with no risk of financial loss, often represented by the yield on government securities like U.S. Treasury bonds.

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