The Slope of the Budget Constraint Line Is

question 2

Multiple Choice

The slope of the budget constraint line is

• A)the ratio of the prices (p_x/p_y).
• B)the negative of the ratio of the prices (p_x/p_y).
• C)the ratio of income divided by price of y (I/p_y).
• D)none of these is correct.

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Definitions:

Beta

An evaluation of how a security or a portfolio's risk level and volatility compare with those of the overall market.

PVGO

Present Value of Growth Opportunities (PVGO) refers to the component of a company's stock price that is attributed to future investments' expected net present value.

Market Capitalization Rate

It's the rate of return on a real estate investment property based on the expected income that the property will generate.

P/E Ratio

The price-to-earnings ratio, a valuation metric comparing a company's current stock price to its per-share earnings.