Which of the Following Statements Is True

question 69

Multiple Choice

Which of the following statements is true?

• A) The economy can operate outside (or beyond)its institutional PPF and its physical PPF,but only for a short while.
• B) The economy can operate outside its physical PPF,if only for a short while,but can never operate outside its institutional PPF.
• C) The economy can operate outside its institutional PPF,if only for a short while,but can never operate outside its physical PPF.
• D) The economy can never operate outside its institutional PPF or its physical PPF,even for a short while.
• E) none of the above

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Definitions:

Beta

An assessment tool for determining the comparative volatility or systematic risk of a portfolio or security against the market at large.

Volatility

Volatility is a statistical measure of the dispersion of returns for a given security or market index, indicating the degree of variation from the average over a certain period.

CAPM

The Capital Asset Pricing Model is a formula used to determine the expected return on an investment, factoring in its risk compared to the market.

Required Return

The smallest yearly percentage gain from an investment necessary to entice people or corporations to invest in a certain security or endeavor.