Suppose You Have an Asset with a Return That Rises

question 59

Multiple Choice

Suppose you have an asset with a return that rises as GDP increases.How will the asset's return be affected if the government announces that GDP is unexpectedly higher than was previously thought?

• A)The return will increase.
• B)The return will remain unchanged.
• C)The return will decrease.
• D)It is undetermined and more information is needed.

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Definitions:

Strictly Liable

Having legal responsibility for damages or loss, regardless of care or intent.

Hot Dog

A cooked sausage, traditionally grilled or steamed and served in a sliced bun as a sandwich.

Duty of Care

Legal obligation to act with a level of caution and attention to prevent harm to others.

Standard of Care

The degree of prudence and caution required of an individual who is under a duty of care, often used in legal contexts to assess negligence.