Hedging risk and spreading risk are two ways to:
A. match up perfectly positively correlated assets.
B. lower transaction costs.
C. diversify a portfolio.
D. increase expected returns from a portfolio.
Answer: C
You might also like to view...
In the above table, saving is positive when real disposable income is greater than
A) $300. B) $100. C) zero. D) $500.
When the government borrows in the market, it
A. does not have to pay interest. B. is not required to pay back the entire principle. C. can get indefinite extensions on the loan. D. all of these answer options are correct. E. none of these answer options are correct.
A permanent increase in the domestic money supply
A) must ultimately lead to a proportional decrease in E, and, therefore, the expected future exchange rate must rise proportionally. B) must ultimately lead to a proportional decrease in E, and, therefore, the expected future exchange rate must decrease proportionally. C) must ultimately lead to a proportional rise in E, and, therefore, the expected future exchange rate must rise proportionally. D) must ultimately lead to a proportional rise in E, and, therefore, the expected future exchange rate must rise more than proportionally. E) must ultimately lead to a proportional rise in E, and, therefore, the expected future exchange rate must rise less than proportionally.
In some circumstances, selling pollution permits may be better than levying a corrective tax
a. True b. False Indicate whether the statement is true or false