In Which of the Following Cases Would the Influence of Interest

question 18

Multiple Choice

In which of the following cases would the influence of interest groups make conflict LESS likely?

• A)A small number of arms manufacturers build weapons that deter other countries from attacking.
• B)Immigrants want the government to impose a trade embargo on goods manufactured in their homeland.
• C)A group of manufacturers wants the government to increase tariffs on imports.
• D)A small group of investors wants to increase trade with another country.

---

Definitions:

Factor Portfolio

A portfolio that is constructed to have a high sensitivity to certain economic or financial factors, aiming to capture specific risk premiums.

Well-diversified Portfolio

An investment portfolio comprised of various assets to reduce exposure to risk by spreading investments across different industries, asset classes, or other categories.

Beta

A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.

Factor Portfolio

A portfolio constructed to have a high sensitivity to certain risk factors, aiming to achieve specific investment outcomes related to those factors.