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The Use of Block Grants, Allowing States Considerable Leeway in How

question 45

Multiple Choice

The use of block grants, allowing states considerable leeway in how federal money is spent, was championed by President ________ under the name New Federalism.


Definitions:

CML

The Capital Market Line, representing the risk-return trade-off of efficient portfolios in the capital market theory; it shows the highest return possible for any given level of risk.

Well-Diversified Portfolios

Investment portfolios that contain a wide variety of assets to minimize exposure to any single asset or risk.

Relative Systematic Risk

The risk inherent to the entire market or market segment, which can be compared relative to other stocks or securities within the same market.

Beta

A measure of a stock's volatility in comparison to the overall market; a beta greater than 1 indicates higher than market volatility.

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