A risk-averse investor will:
A. sometimes accept a lower expected return if it means less risk.
B. only invest in assets providing certain returns.
C. always accept a greater risk with a greater expected return.
D. never accept lower risk if it means accepting a lower expected return.
Answer: A
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Refer to the scenario above. What is Alice's optimal bidding price?
A) $25,000 B) $30,000 C) $24,000 D) $36,000
When the Fed buys U.S. government securities from a member bank, that bank's excess reserves, required reserves, and total reserves all increase
a. True b. False Indicate whether the statement is true or false
Sam's surf shop has total costs of $2,000 when it is not producing any surfboards. This means that
A. Variable costs are $2000. B. The shop is very inefficient in its production. C. Fixed costs are zero. D. Fixed costs are $2,000.
Refer to Figure 12-2. What happens if the firm produces more than Q4 units?
A) It could make a profit or a loss depending on what happens to demand. B) Its total revenue is increasing faster than its total cost. C) Its profit increases. D) It makes a loss.