Which of the Following Is Correct Concerning Recessions

question 353

Multiple Choice

Which of the following is correct concerning recessions?

• A)They come at fairly regular and predictable intervals.
• B)They are associated with comparatively large declines in investment spending.
• C)They are any period when real GDP growth is less than average.
• D)They tend to be associated with falling unemployment rates.

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Definitions:

Expected Return

The average return of an investment, accounting for the likelihood of different outcomes, weighted by their probabilities.

Expected Return

The anticipated value or profit that an investment is expected to generate, accounting for all known risks and rewards.

Standard Deviation

Standard deviation is a statistical measure of the dispersion or variability of returns for a given security or market index, indicating the degree of risk involved.

Risky Asset

Any asset that has a significant degree of risk associated with its expected returns, including the possibility of losing some or all of the original investment.