Which Statement Is TRUE

question 230

Multiple Choice

Which statement is TRUE?

• A)There is no such thing in the United States as a permanent underclass.
• B)There is no relationship between poverty and the twin problems of crime and drugs.
• C)Poverty,crime,and welfare dependency have all fallen since the mid-1990s.

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Definitions:

Market Risk Premium

The additional return expected by investors for taking on the higher risk of investing in the stock market over risk-free securities.

Dividend

A part of a company's profits distributed to its shareholders, typically every three months.

Required Return

The minimum expected rate of return on an investment necessary to compensate for the risk of the investment.

Beta

A measurement of the volatility of a stock or portfolio compared to the market as a whole.