A General Input Is a Capital Good That Has

question 2

Multiple Choice

A general input is a capital good that has

• A) many uses
• B) no uses
• C) only one specific use

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Definitions:

Risk Premium

The risk premium is the extra return above the risk-free rate that investors demand as compensation for the risk of investing in a particular asset.

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio of assets in comparison to the market as a whole.

Unsystematic Risk

Risk associated with a specific company or industry, which can be mitigated through diversification.

Market Risk

The possibility of an investor experiencing losses due to factors that affect the overall performance of the financial markets.