What Type of Investment Would Have a High Risk Premium

question 126

Multiple Choice

What type of investment would have a high risk premium associated with political and regulatory risk?

• A)A drug company
• B)A casino company
• C)A tobacco company
• D)All of the above are correct.

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Definitions:

Inequalities

The uneven distribution or access to resources, rights, and opportunities among different groups in society.

Laffer Curve

A theoretical representation showing the relationship between tax rates and the amount of tax revenue collected by governments.

Tax Revenues

The income that is gained by governments through taxation.

Federal Deficit

The financial condition that occurs when the government's expenditures exceed its revenues in a given fiscal year.