Arbitrage causes all financial assets:
A. of the same risk level to have the same price.
B. to have the same expected rate of return.
C. to have the same beta.
D. of the same risk level to have the save average expected rate of return.
D. of the same risk level to have the save average expected rate of return.
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In the figure above, what is the slope of the curve at point A?
A) 0.75 B) -0.75 C) 1.33 D) -1.33 E) zero
Why are most of the U.S. dollars held outside of the United States?
What will be an ideal response?
In a franchising relationship
a. the franchisor is the local businessman or businesswoman b. the trademark holder contracting with local operations is the franchisor c. the franchisor is the trademark holder contracting with local operations d. the trademark holder contracting with local operations is the franchisee
Consider two resource markets in which the demand curves slope downward. In market A, the supply curve is horizontal, equilibrium price is $6, and 100 units of the resource are hired. In market B, the supply curve is vertical, equilibrium price is $20, and 30 units of the resource are hired. Which of the following is true?
a. Total resource earnings are the same in both markets. b. Total resource earnings are greater in market A. c. Total resource earnings are greater in market B. d. There is more economic rent in market A. e. There is derived demand in market A, but not in market B.