Which of the Following Statements Could Be Considered a Normative

question 42

Multiple Choice

Which of the following statements could be considered a normative statement?

• A)Food stamps are a good way to help low-income people to afford food.
• B)Food stamps allow low-income people to buy more food.
• C)Most low-income people use Food Stamps to buy food.
• D)A large portion of the government budget is used to provide Food Stamps to low-income people.

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Definitions:

Beta

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole.

Standard Deviation

Standard deviation measures the amount of variation or dispersion of a set of values, indicating the volatility or risk associated with a particular investment.

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than one indicates greater volatility.

Required Rate of Return

The minimum annual percentage return an investor expects to achieve from an investment, considering its risk.