If Equal Risk Is Added Moving Along the Envelope Curve

question 37

Multiple Choice

If equal risk is added moving along the envelope curve containing the best possible combinations the return will

• A) decrease at an increasing rate.
• B) decrease at a decreasing rate.
• C) increase at an increasing rate.
• D) increase at a decreasing rate.
• E) remain constant.

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Definitions:

FUTA

The Federal Unemployment Tax Act (FUTA) is a United States federal law that imposes a payroll tax on employers to fund state workforce agencies.

Unemployment Taxes

Taxes paid by employers to fund the unemployment benefits, based on the number of employees and the history of layoffs.

Employer's Payment History

A record of all the payments made by an employer, including wages, taxes, and contributions.

Ceiling

The maximum limit on the price, wage, or other variable typically set by a government or regulatory body.