You are a financial advisor and a client tells you he is concerned about the amount of risk in his portfolio. Assuming your client hasn't already done them, what two things can you suggest to reduce your client's risk? What additional information about reducing risk should you provide?
The client can reduce his risk by further diversification and by moving some of his portfolio from stock to bonds. You should remind your client that although bonds have lower risk, they also have a lower return.
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Steve went to his favorite hamburger restaurant with $3, expecting to buy a $2 hamburger and a $1 soda. When he arrived, he discovered that hamburgers were on sale for $1 each, so Steve bought two hamburgers and a soda. Steve's response to the decrease in the price of hamburgers is best explained by
A. the price effect. B. a rightward shift in the demand curve for hamburgers. C. the substitution effect. D. the income effect.
A monopolist's demand curve is the same as the marginal revenue curve for the product
Indicate whether the statement is true or false
Suppose the daily demand for Coke and Pepsi in a small city are given by QC = 90 - 100PC + 400(PP - PC) and QP = 90 - 100PP + 400(PC - PP), where QC and QP are the number of cans Coke and Pepsi sell, respectively, in thousands per day. PC and PP are the prices of a can of Coke and Pepsi, respectively, measured in dollars. The marginal cost is $0.45 per can for both Coke and Pepsi. What is Pepsi's inverse demand function?
A. PP = (0.18 + 0.8PC) - 0.002QP B. QP = (0.18 + 0.8PC) - 0.002PP C. PP = (90 + 400PC) - 0.002QP D. QP = (90 + 400PC) - 0.002PP
Everything else held constant, a monetary expansion is characterized by ________ output and ________ interest rates
A) rising; rising B) rising; falling C) falling; rising D) falling; falling