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Choose the Word or Phrase in [ ] Which Will

question 156

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Dividends received from stocks are known as [passive | portfolio] income.


Definitions:

Commodity Prices

Commodity prices are the market prices for raw materials such as gold, oil, and agricultural products, influenced by supply and demand factors.

GDP Changes

The alterations in the Gross Domestic Product of a country, indicating the rate of growth or decline in the economy over a period.

Risk Premium

The extra return above the risk-free rate that investors require as compensation for the risk of an investment.

Simple CAPM

A model that describes the relationship between the risk of a security and its expected return, based on the premise that markets are efficient.

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