Lori, who currently owns stock in four companies, has decided to expand her portfolio by purchasing stock in virtually every company that sells stock. In doing so, Lori will
a. increase the risk of her portfolio.
b. decrease some, but not all, of the risk of her portfolio.
c. decrease all of the risk of her portfolio.
d. leave the risk of her portfolio unchanged from its present level.
b
You might also like to view...
The bulk of exports from developed countries consists of:?
A. raw materials. B. agricultural products. C. education and technology. D. manufactured goods. E. services like banking and insurance.
The principle of minimum differentiation reflects the
A) tendency for firms to produce at minimum marginal cost in order to compete with one another. B) tendency for political parties to make themselves identical to appeal to the median voter. C) concept of minimizing the difference between total benefit and total cost to produce efficiently. D) attempt to minimize the free-rider problem.
Refer to the above table. Suppose the marginal revenue product of the 5th worker is $800. This implies that
A) the price of the good is $5.33. B) the price of the good is $8. C) the price of the good is $70. D) we cannot tell what the price of the good is without more information.
Appendix: The principal advantage of an open bidding system for allocating telecommunications spectrum licenses was
a. the pooling of asymmetric information by the bidders b. the reconfiguring of cell phone license areas c. the substitute value of adjacent service areas d. reduced cost