Suppose stock X has a beta of 2.5 and stock Y has a beta of 0.5. From this we can conclude that X has:
A. 5 times the nondiversifiable risk of the market portfolio.
B. 5 times the nondiversifiable risk of Y.
C. 2.5 times the nondiversifiable risk of Y.
D. 2.5 times the diversifiable risk of the market portfolio.
B. 5 times the nondiversifiable risk of Y.
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The increase in government spending on unemployment insurance payments to workers who lose their jobs during a recession and the decrease in government spending on unemployment insurance payments to workers during an expansion is an example of
A) discretionary monetary policy. B) automatic stabilizers. C) automatic monetary policy. D) discretionary fiscal policy.
Quantitative easing is a central bank policy that attempts to stimulate the economy by possibly
A) selling treasury securities. B) making discount loans to nonfinancial corporations. C) slowly reducing the required reserve ratio. D) buying long-term securities.
In the long run, a firm's producer surplus is equal to the
A) economic rent it enjoys from its scarce inputs. B) revenue it earns in the long run. C) positive economic profit it earns in the long run. D) difference between total revenue and total variable costs. E) difference between total revenue and total fixed costs.
By definition, an industry with high concentration also is highly competitive
a. True b. False Indicate whether the statement is true or false