What Effect Does the Elaborate Detail Found in Most State

question 77

Multiple Choice

What effect does the elaborate detail found in most state constitutions tend to have?

• A)State elected officials are allowed greater legislative discretion
• B)Appointed administrative positions in the state are less accountable to the state legislature
• C)Political action is constricted within a constitutional straitjacket
• D)There is less possibility of federal preemption of state law
• E)None of the above

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Definitions:

Yield to Maturity

The total return anticipated on a bond if it is held until the date it matures, expressed as an annual rate.

Par

The face value of a bond or stock, which is the amount the issuer agrees to pay back at maturity, often set at $100 for bonds.

SML Approach

Stands for Security Market Line, a graphical representation used in finance to demonstrate the relationship between risk and expected return of assets.

Systematic Risk

The risk inherent to the entire market or a market segment that cannot be mitigated through diversification, often influenced by factors like economic, political, and social changes.