Which of the Following Is Not an Explanation for the Revival

question 28

Multiple Choice

Which of the following is not an explanation for the revival in the growth of productivity starting in the mid-1990s?

• A)Information and communication innovations are increasingly geared toward improving business processes and not consumer products.
• B)Faster computers have sped up data processing.
• C)Internet use has increased the efficiency of how firms buy and sell to each other and to consumers.
• D)Cell phones and wireless Internet access have increased worker flexibility.

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Definitions:

Market Portfolio

A theoretical portfolio that contains every asset in the market, weighted by market capitalization.

Security Market Line

A graphical representation of the expected return of investments as a function of their risk, specifically their beta.

Expected Return

The average of all the possible returns for an investment, weighted by their respective probabilities.

Beta

A measure of a stock's volatility in relation to the overall market, used to gauge a stock's risk level relative to the market average.