The Purpose of the Clayton Act Is to

question 102

Multiple Choice

The purpose of the Clayton Act is to

• A)provide incentives for interstate commerce.
• B)forbid actions that are likely to lessen competition,although no actual harm has yet occurred.
• C)exact compensation from firms found guilty of violating fair trade practices.
• D)repeal provisions of the Sherman Antitrust Act.
• E)strengthen the Robinson-Patman Act.

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Definitions:

Diversifiable Risk

The portion of investment risk that can be reduced or eliminated through diversification in an investment portfolio.

Unique Risk

Another term for diversifiable risk, emphasizing the idea that this risk is specific to an individual investment and not the market as a whole.

Systematic Risk

The risk inherent to the entire market or market segment, also known as market risk, which cannot be eliminated through diversification.

Capital Allocation Line

A line on a graph that shows the rates of return of portfolios that optimally combine risk and return for an investor.