Risk aversion implies that
A) individuals will not take on risk.
B) investors must be compensated for about half of the risk they take on.
C) investors must be compensated for the risk they take on.
D) None of the above.
C
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The figure above shows the relationship between the journey length and the cost of trip per mile. The curve becomes flatter because as the journey length increases,
A) the cost per mile increases. B) the fall in the cost per mile becomes greater. C) the cost per mile remains unchanged. D) the cost per mile decreases. E) the fall in the cost per mile becomes smaller.
All of the following are a current account transaction EXCEPT
A) importing services. B) exporting goods. C) investing abroad. D) importing goods.
If the economy is inflationary, the Fed would most likely:
a. encourage banks to provide loans by buying government securities. b. encourage banks to provide loans by raising the discount rate. c. encourage banks to provide loans by selling government securities. d. restrict bank lending by selling government securities. e. restrict bank lending by lowering the federal funds rate.
Which of the following would not appear in the investing activities of the statement of cash flows?
A. Sale of investments B. Purchase of land C. Purchase of inventory D. All of the above would appear in the investing section of the statement of cash flows