Suppose there's an 80% chance of a stock rising by 20% and a 20% chance of it falling by 40%. What is the expected rate of return on the stock?
A) -40%
B) -20%
C) 8%
D) 16%
C
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In order to efficiently allocate goods and services, we have to compare
A) total cost to total benefit. B) total cost to price. C) marginal benefit to price. D) marginal cost to marginal benefit. E) price to marginal cost.
If a firm wants to sell bonds in Tokyo to denominated in U.S. dollars
A) they would be selling a form of Eurobonds. B) they would have to sell the bonds in dollars first. C) the bonds could only be sold if the firm opened a Eurocurrency account first. D) their profits would have to be converted to yen.
Instead of trying to balance the budget every year, it is easier to:
A. balance the budget over the business cycle. B. allow deficit spending only in times of economic downturn. C. allow surpluses to build during times of economic booms. D. All of these statements are true.
In 2000, Microsoft was
A. found guilty of violating U.S. antitrust laws. B. ordered to dispose of all of its subsidiary companies. C. required to make its patents, trademarks, and trade secrets available to competitors. D. punished for violating the U.S. antitrust laws by a fine exceeding one million dollars.