As the number of stocks in a portfolio rises,
a. both firm-specific risks and market risk fall.
b. firm-specific risks fall; market risk does not.
c. market risk falls; firm-specific risks do not.
d. neither firm-specific risks nor market risk falls.
b
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Which of the following statements is true?
A) Comparative statics is a tool that can be used in both optimization in levels and optimization in differences. B) Marginal analysis is a key tool used while optimizing in levels. C) Comparative statics involves calculating the incremental cost of moving from one alternative to the next best alternative. D) Marginal analysis is the comparison of economic outcomes before and after some economic variable is changed.
In an oligopoly, output is
A) less than the output in monopoly. B) greater than the output in perfect competition. C) in all circumstances the same as the output in perfect competition. D) somewhere between the output in monopoly and that in perfect competition outcomes. E) in all circumstances the same as the output in monopoly.
If there is a direct relationship between two variables
A) the graph of the relationship will be upward-sloping. B) the graph of the relationship will be downward-sloping. C) the slope of the line (or the slope of a tangent line to the curve) will be negative. D) Both answers A and C are correct.
For a trucking company, all of the following are examples of fixed costs, except
a. Tax accountant fees b. Package designing fees c. Insurance d. Gasoline costs