If Net Investment in 2016 Is $350 Billion and Gross

question 158

Multiple Choice

If net investment in 2016 is $350 billion and gross investment in 2016 is $500 billion, depreciation in 2016 is

• A) $0.7 billion.
• B) $150 billion.
• C) $175 billion.
• D) $250 billion.

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Definitions:

Market Portfolio

A theoretical bundle of investments that includes every type of asset available in the market, with each asset weighted according to its total market value.

Beta

A measure of a security's volatility in relation to the market, indicating its relative riskiness.

Arbitrage Pricing Theory

A theory that describes how the price of assets or securities is determined through the relationship to several risk factors or theoretical market indices.

Stephen Ross

An influential economist and finance professor known for his work in developing the Arbitrage Pricing Theory and other significant contributions to finance.