Which Statement Is True

question 124

Multiple Choice

Which statement is true?

• A)If the APC is greater than one,the APS is negative.
• B)If the APC is less than one,the APS is negative.
• C)The APS can never be negative.
• D)None is true.

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Definitions:

Expected Return

The average return an investment is projected to generate based on historical data or probability-weighted scenarios.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents.

Overall Economy

The sum total of all the economic activity within a given region or country, encompassing all sectors, markets, and levels of income.

Portfolio Beta

A measure of the volatility of a portfolio relative to the overall market; the aggregate beta of all the investments in the portfolio.