The Period During Which Real Output Falls During a Business

question 34

Multiple Choice

The period during which real output falls during a business cycle is called:

• A)peak.
• B)recession.
• C)recovery.
• D)trough.

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Definitions:

Cyclical Stock

A stock whose price is affected by macroeconomic changes in the overall economy, often correlated with economic cycles of expansion and recession.

Expected Return

The anticipated return on an investment, calculated as a weighted-average of all possible returns, based on their probabilities.

Expected Return

The anticipated percentage return on an investment, accounting for all possible outcomes and their probabilities.

Market Risk Premium

The additional financial gain an investor looks to achieve by preferring a risk-laden market portfolio over risk-free investment options.