The key assumption of the capital asset pricing model is that an investor cares only about his portfolio's

a. degree of diversification.
b. expected income.
c. level of risk.
d. expected return and standard deviation.


d. expected return and standard deviation.

Economics

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Based on the figure below. Starting from long-run equilibrium at point C, a decrease in government spending that decreases aggregate demand from AD1 to AD will lead to a short-run equilibrium at__ creating _____gap.

A. B; no output B. D; an expansionary C. B; recessionary D. D; a recessionary

Economics

For a public good, the marginal social benefit curve is the ________ summation of all the individual marginal benefit curves

For a private good, the marginal social benefit curve is the ________ summation of all the individual marginal benefit curves. A) horizontal; vertical B) vertical; horizontal C) vertical; vertical D) horizontal; horizontal

Economics

The leverage ratio for the U.S. banking system in 2007 was about __________ percent

A) two B) five C) ten D) eighteen

Economics

A Gini coefficient of zero indicates:

A. there is no income being earned. B. Computed correctly the Gini coefficient only has values greater than zero. C. perfect inequality. D. perfect equality.

Economics