Danielle Did Not Work Last Week Because Flooding Forced an Evacuation

question 121

Multiple Choice

Danielle did not work last week because flooding forced an evacuation of her workplace. The Bureau of Labor Statistics counts Danielle as

• A)unemployed and in the labor force.
• B)unemployed and not in the labor force.
• C)employed and in the labor force.
• D)employed and not in the labor force.

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Definitions:

Risk Premium

The risk premium is the additional return an investor requires for choosing a risky investment over a risk-free asset, compensating for the extra risk undertaken.

Arithmetic Average Return

The simple average of a series of returns generated over a period of time.

Variance

A statistical measurement of the dispersion of returns for a given security or market index, indicating volatility.

Time Horizon

The length of time over which an investment is expected to be held or a financial goal is to be achieved.