By purchasing shares in a mutual fund that holds a portfolio of stocks, a person can
a. benefit from fundamental analysis, since the mutual fund requires its shareholders to perform fundamental analysis on their own.
b. benefit from fundamental analysis, since the mutual fund hires one or more individuals to perform fundamental analysis for the fund.
c. eliminate market risk.
d. reduce the standard deviation of his or her portfolio to zero.
b
You might also like to view...
Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Three hundred paper mills compete in the paper market. The total cost of production (in dollars) for each mill is given by the formula TC = 1,000Qmill + (Qmill)2, where Qmill indicates the mills annual production in thousands of tons. The marginal external cost of a mill's production (in dollars) is given by the formula MEC = 200 + 2Qmill. Finally, annual market demand (in thousands of tons) is given by the formula Qd = 200,000 - 100P. What is the competitive market quantity?
A. 108,000 B. 60,000 C. 500 D. 0
It may be necessary to ration a good whenever ___________ exists.
A. a surplus B. excess demand C. excess supply D. None of these choices are correct.
The quantity of good A is measured along the vertical axis, and the quantity of good B is measures along the horizontal axis. If the price of Good A falls
A) the vertical intercept of the budget line moves along the vertical axis away from the origin. B) the vertical intercept of the budget line moves along the vertical axis toward the origin. C) the horizontal intercept (along Good B) of the budget line will increase. D) none of the above