What would be the standard deviation for a $1000 risk-free asset that returns $1,100?
What will be an ideal response?
The standard deviation for this asset would have to be $0. If it is truly risk-free the return is certain, and if the return is certain there is no variance in the return, therefore no standard deviation.
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Full employment is the rate of employment that results when
a. all labor resources of an economy are employed. b. there is efficient use of the labor force, with allowance made for normal unemployment due to dynamic changes and the structural conditions of the economy. c. cyclical unemployment is between 4 and 5 percent of the labor force. d. everybody who wants a job can find one.
The ______ budget constraint shows the tradeoff between present and future consumption.
a. utility-maximizing b. time-value of money c. intertemporal choice d. inflation
The aggregate demand curve shifts to the left when the Fed:
A. increases its target inflation rate, reflected by a downward shift in the Fed's policy reaction function. B. decreases its target inflation rate, reflected by an upward shift in the Fed's policy reaction function. C. decreases real interest rates in response to inflation, but does not change its target inflation rate or the Fed's policy reaction function. D. increases real interest rates in response to inflation, but does not change its target inflation rate or the Fed's policy reaction function.
Because in oligopoly the actions of one firm have a perceptible effect on the other firms, oligopoly firms act strategically.
Answer the following statement true (T) or false (F)