Each of the Following Is an Endogenous Business Cycle Theory

question 393

Multiple Choice

Each of the following is an endogenous business cycle theory except the ___________ theory.

• A)monetary
• B)accelerator
• C)psychological
• D)sunspot
• E)inventory cycle

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Definitions:

CAPM

Capital Asset Pricing Model, a formula used to determine the expected return on an investment based on its risk relative to the market.

APT Model

Arbitrage Pricing Theory Model; a financial theory that estimates the returns on assets based on their exposure to various risk factors.

One Factor

In finance, refers to models or analyses that consider only a single variable or risk factor in their calculations.

CAPM

The Capital Asset Pricing Model, a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.