When a Government Defaults on Its Obligations, the Event Is

question 71

Multiple Choice

When a government defaults on its obligations, the event is called a

• A) sovereign default.
• B) magisterial default.
• C) private default.
• D) sudden stop default.
• E) national default.

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Definitions:

Securities' Returns

The profit or loss derived from investing in a security, including dividends, interest, and capital gains.

Correlation Coefficient

The correlation coefficient is a statistical measure that calculates the strength of the relationship between the relative movements of two variables.

Portfolio Opportunity Set

The expected return–standard deviation pairs of all portfolios that can be constructed from a given set of assets.

Efficient Frontier

A portfolio optimization concept that plots the best possible return for a given level of risk based on various asset combinations.