During the Height of the Cold War,which of the Following

question 86

Multiple Choice

During the height of the Cold War,which of the following actions would have been the most likely for the United States to take with a country in which communist insurgents were rapidly gaining ground?

• A)send an ambassador to negotiate a peaceful agreement between the government and the insurgents
• B)back the communist rebels so that when they completely gained power,the United States would be in their good graces
• C)provide aid to the government in fighting the communist rebels
• D)place economic sanctions on the country until both sides agreed to stop fighting and reached a peaceful agreement
• E)extend diplomatic immunity to government officials who wanted to escape to America

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Definitions:

Optimal Risky Portfolio

An investment portfolio that aims to achieve the highest possible return for a given level of risk.

Capital Market Line

A line used in the Capital Asset Pricing Model to illustrate the rates of return for efficient portfolios subject to the risk (measured by standard deviation) compared to the risk-free rate of return.

Efficient Frontier

Efficient Frontier is a concept in modern portfolio theory that refers to a set of investment portfolios that offer the highest expected return for a given level of risk.

Standard Deviation

A measure of the dispersion or variability of a set of data points or investment returns around the mean.