A Particular Portfolio Has an Expected Return That Is Unaffected

question 24

Multiple Choice

A particular portfolio has an expected return that is unaffected by the state of the economy. The variance of this portfolio must

• A) Be negative
• B) Be less than 1
• C) Be greater than 1
• D) Be equal to 1
• E) Be equal to 0

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Definitions:

Earned Income Tax Credit

A refundable tax credit for low- to moderate-income working individuals and families, especially those with children.

Minimum Wage Laws

Regulations that dictate the lowest legal hourly compensation employers must pay their workers.

Minimum Wage

The lowest wage rate that employers can legally pay their workers, established by government regulation.

Employment Level

A measure indicating the number of people currently employed in an economy, typically not including those self-employed.