Which of the Following Is True Given Various States of the Economy

question 52

Multiple Choice

Which of the following is true given various states of the economy?

• A) The various economic states of the economy are generally equally likely to occur in any given year
• B) Most stocks tend to have the same return regardless of the economic state
• C) The expected state of the economy can have a major impact on the expected return on a portfolio
• D) If the economy moves into a recession period from a normal period, all stocks will have lower expected returns
• E) A change in the probability of a state of the economy occurring has no impact on the expected return on a portfolio of risky assets

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Definitions:

Producing a Job

An approach to manufacturing where goods are produced based on specific customer orders, often involving customized products.

Materials Ledger Card

A record card that tracks the quantity and value of materials on hand in inventory.

Raw Materials Inventory

Goods or materials a company holds that are to be used in the production process to manufacture finished products.

Units Purchased

The quantity of goods a company buys during a specific period for resale or production purposes.