Which of the Following Characteristics Is Generally Representative of Developed

question 42

Multiple Choice

Which of the following characteristics is generally representative of developed countries relative to developing countries?

• A) a larger percentage of the labor force in rural areas
• B) a lower infant mortality rate
• C) lower productivity in the agriculture sector
• D) a lower rate of literacy

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Definitions:

Systematic Risk

The danger that affects all investments within an entire market or a specific sector, commonly referred to as market risk or non-diversifiable risk.

Treasury Bills

Short-term government securities issued at a discount from the par value and pay no interest.

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.