Which of the Following Is Not a Requirement That Must

question 22

Multiple Choice

Which of the following is not a requirement that must be met to elect the "modified approach" to reporting certain eligible infrastructure assets?

• A) The government gets the permission of the Government Accounting Standards Board.
• B) The government documents that the eligible infrastructure assets are being preserved approximately at (or above) the condition level established and disclosed.
• C) The government manages the assets using an asset management system that includes condition assessments of the assets and summary of results using a measurement scale.
• D) The government manages the assets using an asset management system that includes estimates each year of the annual amount needed to maintain and preserve the eligible assets at the condition level established and disclosed by the government.

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Definitions:

Systematic Risk

The risk inherent to the entire market or market segment, also known as non-diversifiable risk or market risk.

Market Index

A statistical measure that tracks the performance of a basket of specific stocks, representing a portion of the overall market to reflect trends or market health.

Index Model

Index Model is a statistical model used in finance to describe the relationship between the returns on an investment and the returns on a market index.

Markowitz

Refers to Harry Markowitz, an economist who developed modern portfolio theory, emphasizing the importance of diversification and the trade-off between risk and return.