In the Expansion Phase of the Business Cycle

question 82

Multiple Choice

In the expansion phase of the business cycle

• A)output is rising.
• B)unemployment is falling.
• C)consumer and business confidence is high.
• D)investment is rising.
• E)all of the above are true.

---

Definitions:

One Factor

In finance, refers to models or analyses that consider only a single variable or risk factor in their calculations.

CAPM

The Capital Asset Pricing Model, a model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Betas

A measure of the volatility, or systematic risk, of a security or portfolio compared to the market as a whole.

Future Volatility

The degree of variation of trading prices over time, typically measured by the standard deviation of returns, predicting the range of potential movements of an asset's price.