Table 8.2 You Are Going to Invest $20,000 in a Portfolio Consisting

question 91

Multiple Choice

Table 8.2
You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows:
-The beta of the portfolio in Table 8.2 indicates this portfolio ________.

• A) has more risk than the market
• B) has less risk than the market
• C) has an unrelated amount of risk compared to the market
• D) has the same risk as the market

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Definitions:

Labor-Force Participation Rate

The percentage of the adult population that is part of the labor force, either employed or actively seeking employment.

Unemployment Rate

The rate at which individuals in the labor force are without jobs but earnestly seeking employment.

Marginally Attached Workers

Individuals who are not currently in the labor force but indicate that they want and are available for a job and have looked for work sometime in the recent past but not actively in the current period.

Cyclical Unemployment Rate

The cyclical unemployment rate measures the fluctuation in unemployment due to the ups and downs of economic cycles, reflecting the overall health of an economy.