Both the CAPM and APT suggest that an asset should be priced so that it has a higher expected return
A) when it has a greater systematic risk.
B) when it has a greater risk in isolation.
C) when it has a lower systematic risk.
D) when it has a lower systematic risk and a lower risk in isolation.
A
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Refer to the table above, which gives five points on a nation's PPF. The opportunity cost of increasing the production of Y from 16 to 36 units is a total of
A) 1/5 unit of X per unit of Y. B) 2/5 unit of X per unit of Y. C) 1/2 unit of X per unit of Y. D) 3/5 unit of X per unit of Y.
Refer to Table 2-12. What is Honduras's opportunity cost of producing one sailboat?
A) 1/5 of a canoe B) 1.5 canoes C) 4 canoes D) 5 canoes
There is much world concern over the deteriorating condition of the pyramids and other historical structures in Egypt. While people of all nations enjoy visiting these structures, there has been little financial support for preservation coming from within Egypt or from elsewhere. Economists would describe this as an example of
A. an externality. B. a public good. C. a free-rider problem. D. imperfect information.
Assume that the Paris First National Bank's loan position contracted from $16 million to $12 million. If the required reserve ratio was increased from 20 percent to 40 percent, how much would the money supply shrink?
A. $5 million. B. $10 million. C. $15 million. D. $20 million.