Each of the Following Statements About West Germany Is Correct

question 37

Multiple Choice

Each of the following statements about West Germany is correct EXCEPT

• A) the Cold War acted as a restraint on the WestGerman economy.
• B) the Federal Republic was in a militarily strategic position in terms of the Cold War.
• C) West Germany was much larger than East Germany.
• D) the Federal Republic was quickly integrated into the new postwar Europe.
• E) West Germany was able to let go of its old nationalist hatreds.

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Definitions:

Average Portfolio Standard Deviation

A measure of the volatility of all the assets in a portfolio, calculated as the square root of the variance of the portfolio's returns.

Coefficient of Correlation

A numerical metric evaluating the magnitude and orientation of a linear correlation between two variables, with values spanning from -1 to 1.

Capital Allocation Line

A graph showing risk-versus-return profiles of different portfolios, including the risk-free rate and a combination of risky assets, guiding optimal asset allocation.

Efficient Frontier

A concept in modern portfolio theory demonstrating the set of optimal portfolios offering the highest expected return for a given level of risk.