Recessions Are Periods When

question 43

Multiple Choice

Recessions are periods when:

• A)output rises.
• B)the aggregate price level rises.
• C)the unemployment rate is falling.
• D)output and employment are falling.

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Definitions:

IRR

Internal Rate of Return; a metric used in capital budgeting to estimate the profitability of potential investments.

Probability Distributions

A statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.

Portfolio Theory

A body of thought aimed at forming investment portfolios that minimize risk for a given return.

Risk Adjusted Returns

Financial returns that have been modified to consider the risk involved in achieving those returns, allowing for a more accurate comparison of different investments.