In the Context of the Global General Environment, Which of the Following

question 41

Multiple Choice

In the context of the global general environment, which of the following accurately defines economic forces?

• A) Laws ensuring fair distribution of resources among the people
• B) Pressures from the social structure of a society or from the national culture
• C) Skills impacting the process of designing and producing goods and services
• D) Factors such as interest rates, inflation, unemployment, and economic growth

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Definitions:

Multifactor APT

A finance model that describes asset prices by taking into account several risk factors, expanding on the Arbitrage Pricing Theory by including multiple variables.

Risk Premiums

Additional returns expected by an investor for taking on additional risk, over and above the risk-free rate of return.

Multifactor APT

Multifactor Arbitrage Pricing Theory, a model that describes the relationship between risk and expected return with multiple factors.