Who Would Be Included in the Labor Force

question 146

Multiple Choice

Who would be included in the labor force?

• A)Louie,who is waiting for his new job to start
• B)Daisey,who has become discouraged looking for a job and has quit looking
• C)Donald,an unpaid stay-at-home father
• D)None of the above is correct.

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Definitions:

Treynor-Black Model

A special case of the Markowitz model of efficient diversification, derived by assuming returns are generated by the index model.

Residual Variance

The variance of the error terms in a regression model, representing the amount of variation that cannot be explained by the model's inputs.

Alpha/Beta

Measures in finance; Alpha represents the strategy's returns above the benchmark, whereas Beta indicates the volatility relative to the market.

Sharpe Measure

A measure of the excess return (or risk premium) per unit of risk in an investment asset or a trading strategy, calculated as the difference between the asset's returns and the risk-free rate, divided by the asset's standard deviation.