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The Risk Free Rate, Average Returns, Standard Deviations and Betas

question 74

Multiple Choice

The risk free rate, average returns, standard deviations and betas for three funds and the S&P500 are given below. The risk free rate, average returns, standard deviations and betas for three funds and the S&P500 are given below.   -Which one of the following is largely based on forecasts of macroeconomic factors? A)  Security selection B)  Passive investing C)  Market efficiency D)  Market timing
-Which one of the following is largely based on forecasts of macroeconomic factors?


Definitions:

Productivity

A measure of efficiency that calculates the amount of output produced per unit of input, such as labor or capital.

Signaling

An action taken by an informed party to reveal private information to an uninformed party, often seen in job markets and education.

Compensation Scheme

A plan or system used to determine how to compensate or reward employees for their work, including wages, benefits, bonuses, and other forms of payment.

Efficiency Wage

A salary set by employers above the market equilibrium to increase productivity, attract high-quality employees, or reduce turnover.

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