Assume a portfolio in which there is equal investment in two assets that are perfectly positively correlated, with equally expected returns of 10 percent and 6 percent for asset A and 8 percent and 4 percent for asset B
The expected yield on this portfolio is A) 8 percent.
B) 7 percent.
C) 6 percent.
D) 5 percent.
B
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Rewarding or penalizing personal characteristics of a worker that are unrelated to his or her productivity is a description of
A) a negative externality. B) a labor quota. C) labor market discrimination. D) a non-income fringe benefit.
________ are non-rival in consumption
A) Public goods and private goods B) Public goods and club goods C) Public goods and common pool resources D) Private goods and common pool resources
A determinant of the price elasticity of supply is the extent to which
A) consumers like the quality of the good. B) the demand for the good is relatively elastic. C) the good has many consumer substitutes. D) production of the good uses commonly available resources.
If the capital—labor ratio is above the Golden Rule capital—labor ratio, then in the steady state,
A) capital per worker is above its maximum. B) output per worker is less than it would be at the Golden Rule capital—labor ratio. C) investment per worker exceeds output per worker. D) consumption per worker is not at its maximum.