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

question 68

Multiple Choice

The risk free rate, average returns, standard deviations and betas for three funds and the S&P500 are given below.
-Based on the M² measure,portfolio C has a superior return of _____ as compared to the S&P500.

• A) -1.33%
• B) 1.43%
• C) 2.00%
• D) 0.00%

Recognize government actions in maintaining a capitalist economy.

Understand the ideal features of communism as an economic system.

Analyze the impact of globalization on less developed countries.

Differentiate between true and false statements regarding labor markets and corporate practices.

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Definitions:

Modernization Theory

Holds that economic underdevelopment results from poor countries lacking Western attributes, including Western values, business practices, levels of investment capital, and stable governments.

Development Theory

An extensive category of theories that seek to explain the processes, strategies, and mechanisms by which societies progress economically, socially, and politically.

Global Spending Priorities

The allocation and distribution of financial resources across various sectors globally, influenced by economic policies, societal needs, and international agreements.

Collectivism

A value system that emphasizes the importance of the group over individual achievements, promoting shared goals and responsibilities within a community.