All else held constant, as the variance of a payoff increases, the
A) expected value of the payoff increases.
B) risk of the payoff increases.
C) expected value of the payoff decreases.
D) risk of the payoff decreases.
B
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Who formulated the theory that government borrowing may function like an increase in taxes in the sense of reducing current consumption and business expenditures?
A. David Ricardo B. John Maynard Keynes C. Jean Baptiste Say D. Adam Smith
In San Francisco there are many retail clothing stores. Each store is slightly different from every other store. Retail clothing stores are an example of what market structure?
A. perfect competition B. oligopoly C. monopoly D. monopolistic competition
Pat pays $10,000 for a newly issued two-year government bond with a $10,000 face value and a 6 percent coupon rate. One year later, after receiving the first coupon payment, Pat sells the bond. If the current one-year interest rate on government bonds is 5 percent, then the price Pat receives is:
A. $10,000. B. greater than $10,000. C. less than $10,000. D. $500.
When the price level falls, the aggregate planned expenditure curve shifts ________, equilibrium expenditure ________ and there is a movement ________ along the aggregate demand curve
A) upward; decreases; downward B) upward; increases; downward C) upward; increases; upward D) downward; decreases; downward E) downward; increases; upward