The budget line in portfolio analysis shows that
A) the expected return on a portfolio increases as the standard deviation of that return increases.
B) the expected return on a portfolio increases as the standard deviation of that return decreases.
C) the expected return on a portfolio is constant.
D) the standard deviation of a portfolio is constant.
E) a riskless portfolio will earn a zero return.
A
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The consumption function is relationship between consumption and:
A. total spending. B. investment. C. aggregate expenditure. D. disposable income.
Which of the following would not be considered an automatic stabilizer?
A) rising corporate income tax revenues due to an expanding economy B) increasing food stamp payments due to more people becoming unemployed during a recession C) legislation increasing funding for job retraining passed during a recession D) decreasing unemployment insurance payments due to increased employment during an expansion
Which of the following is TRUE about the World Bank?
A) It is a multinational agency that specializes in development loans. B) It is a U.S. agency that specializes in development loans. C) It is a U.N. sponsored agency that specializes in development loans. D) It is made up of all central banks in the world.
Economic profit is the difference between
A. accounting profit and explicit costs. B. total revenue and the opportunity cost of all of the resources used in production. C. total revenue and the implicit costs of using owner-supplied resources. D. accounting profit and the opportunity cost of the market-supplied resources used by the firm.