-Calculate Quantitative's Stock Selection Return Contribution

question 4

Multiple Choice

-Calculate Quantitative's stock selection return contribution.

• A)1.0%
• B)-1.0%
• C)3.0%
• D)0.25%
• E)none of the above.

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Definitions:

Discretionary Fiscal Policy

Government policy that involves altering government spending and taxation to influence the economy, based on current economic conditions.

Automatic Stabilizers

Structural features of government spending and taxation that reduce fluctuations in disposable income, and thus consumption, over the business cycle.

Net Taxes

The total taxes paid to the government after subtracting transfers and government spending directly beneficial to the taxpayer, such as social security or unemployment benefits.

Disposable Income

The finance households possess for setting aside savings and covering expenses, following income tax deductions.