If One Looks at U

question 28

Multiple Choice

If one looks at U.S. Census data and finds that the average male salary is $43,000 while the average female salary is $38,000, which of the following is not likely to be a significant cause of this difference given U.S. labor market demographics?

• A)Women are more inclined than men to work part-time.
• B)Women have less education than men.
• C)Women and men prefer different kinds of jobs.
• D)Labor market discrimination.
• E)On-the-job experience.

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Definitions:

Portfolio Beta

A measure of the sensitivity of a portfolio's returns to the returns of the overall market, indicating the level of market risk associated with the portfolio.

Portfolio Standard Deviation

A measure of the dispersion of returns from a portfolio, indicating the risk involved in holding the portfolio.

Treasury Bill Rate

The interest rate paid by the government on its short-term debt obligations, often seen as a benchmark for risk-free rates.

Market Rate of Return

The average return on investment that is typically expected from an asset class over a period.