Since the Late 1980s, There Has Been a Spread of Democracy

question 61

Multiple Choice

Since the late 1980s, there has been a spread of democracy. This is because

• A) a state's ability to control access to uncensored information has increased.
• B) the socialist model failed to deliver economic progress to the vast bulk of their populations.
• C) in many countries the middle and working classes have become less powerful.
• D) in many countries state-ownership of firms has encouraged innovation and entrepreneurship.

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Definitions:

Underpriced

A term used to describe a security or any financial instrument that is selling for a price believed to be below its true intrinsic value.

Well-diversified Portfolio

An investment portfolio that spreads risk by holding a wide variety of assets, potentially across different asset classes, sectors, and geographies.

Unsystematic Risk

Refers to the risk associated with specific entities, such as companies or industries, that can be mitigated through diversification.

Efficient Frontier

A concept in portfolio theory that represents the set of portfolios offering the highest expected return for a given level of risk.