Holding a group of assets reduces risk relative to holding a single asset as long as the assets
A) are dependent on each other.
B) are positively correlated.
C) are uncorrelated.
D) do not have precisely the same pattern of returns.
D
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Suppose the economy is initially in the steady state. A reduction in the depreciation rate (?) will cause
A) an increase in K/N. B) an increase in Y/N. C) an increase in C/N. D) all of the above E) none of the above
According to the figure above, which point or points correspond to full employment?
A) only point a B) only point b C) only point c D) points a and b E) points a, b, and c
A monopolist has set her level of output to maximize profit. The firm's marginal revenue is $20, and the price elasticity of demand is -2.0. The firm's profit maximizing price is approximately:
A) $0 B) $20 C) $40 D) $10 E) This problem cannot be answered without knowing the marginal cost.
Which of the following properties hold true for the equilibrium price-quantity combination?
a. Buyers who are willing to pay higher than the equilibrium price do not find sellers. b. At the equilibrium price producer surplus equals consumer surplus. c. The equilibrium output is produced at the lowest avoidable cost. d. The equilibrium output is produced at the lowest opportunity cost.