While You Can Lend at the Risk-Free Rate but Cannot

question 106

Multiple Choice

While you can lend at the risk-free rate but cannot borrow at that rate, your choice of a complete portfolio is

• A) unaffected at all levels of risk.
• B) separate from the shape of the Markowitz efficient frontier.
• C) unaffected at low levels of risk but restricted at high levels of risk.
• D) restricted at low levels of risk but unaffected at high levels of risk.
• E) none of the above

Grasp the principles of Learned Needs Theory and its implications for leadership and motivation.

Recognize the significance of accurate job performance measurement in enhancing employee motivation.

Understand the role of self-confidence and its development in increasing employee performance.

Realize the effectiveness of goal setting and the characteristics that make goals motivating.

---

Definitions:

Regressive Tax

A tax applied uniformly, taking a larger percentage of income from low-income earners than from high-income earners, considered to be inversely proportional to the taxpayer's ability to pay.

Average Tax Rate

The proportion of total income that an individual or business pays in taxes, calculated by dividing the total tax paid by the taxable income.

Progressive Tax

A tax system in which the tax rate increases as the taxable amount increases, usually aimed at ensuring fairness by taxing higher incomes at higher rates.

Average Tax Rate

The fraction of total income that is paid in taxes, calculated by dividing the total tax amount by the total income.