A $600 investment has the following payoff frequency: a quarter of the time it will be $0; three quarters of the time it will pay off $1000. Its standard deviation and value at risk respectively are:
A. $433; $600
B. $0; $1,000
C. $433; $1,000
D. $750; $600
Answer: A
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The price of borrowing is known as the:
A. equilibrium price. B. transaction cost. C. interest rate. D. None of these is true.
The supply curve slopes
A. upward to the right. B. upward to the left. C. downward to the right. D. downward to the left.
Last month Laura saw the value of her stock portfolio rise by $20,000. This month she saw the value of her portfolio decline by $20,000. According to behavioral economics:
A. the positive utility Laura received from seeing her portfolio value rise was equal to the disutility she felt when its value declined. B. Laura should not invest in stocks unless the utility she receives from gains is at least as great as the disutility she feels from losses. C. the positive utility Laura received from seeing her portfolio value rise was greater than the disutility she felt when its value declined. D. the positive utility Laura received from seeing her portfolio value rise was less than the disutility she felt when its value declined.
Suppose in the imaginary country of Xurbia, a remarkable new tool which improves the ability for job seekers to find out about jobs at different companies and make contact with those companies with relative ease is introduced and widely adopted by employers and job seekers. What do you expect will happen to the natural rate of unemployment in Xurbia?