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Industrial Policy Seeks to Direct Resources to Declining Industries in Which

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Industrial policy seeks to direct resources to declining industries in which productivity is low, linkages to the rest of the economy are weak, and future competitiveness is remote.


Definitions:

Zero Alphas

Situations in which an investment performs exactly as expected according to its beta, showing neither added nor diminished value.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, often represented by government bonds.

Expected Market Rate

The anticipated return that investors predict they will receive from an investment in the financial markets.

Systematic Risk

The risk associated with market fluctuations that cannot be mitigated through diversification, affecting all investments across the board.

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