It Has Been Suggested That a Major Factor in the Emergence

question 31

Multiple Choice

It has been suggested that a major factor in the emergence of industrial states in Europe was due to:

• A) an increase in contact and trade among different societies
• B) the establishment of state controlled religions
• C) the invention of the printing press and steam engine
• D) the collapse of the traditional family and its values

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Definitions:

Market Risk Premium

The extra return expected by investors from holding a risky market portfolio instead of risk-free assets.

Security Market Line

A graphical representation used in financial markets to illustrate the relationship between risk and return for individual securities.

Reward-To-Risk Ratio

A measure used in finance to compare the expected returns of an investment to the amount of risk undertaken to capture these returns.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield of government bonds from stable governments.