At about what number of companies does the reduction in risk from adding stocks of more companies to a portfolio do little to reduce risk?
The reduction in risks after 20 or 30 are small.
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The excess capacity theorem states that
a. society is worse off with fewer monopolistic competitors. b. costs of production under monopolistic competition can be lowered by reducing the number of producers. c. lack of excess capacity leads to shortages during periods of unexpected growth in demand for goods produced by monopolistic competition. d. there is too much choice in our economy.
The Second Circuit and Eleventh Circuit Courts of Appeal affirmed dismissal of securities fraud claims because the plaintiffs did not adequately plead scienter under the standard imposed by the Private Securities Litigation Reform Act of 1995. Scienter is defined as which of the following?
(a) The standard of reasonableness required of a prudent person in the management of his affairs (b) An untrue statement of a material fact (c) The intent to deceive, manipulate, or defraud (d) The failure to maintain due diligence during the issuance of new securities known as an IPO
If C = 2000 + .9YD, what increase in government spending must occur for equilibrium output to increase by 1000?
A) 100 B) 200 C) 250 D) 500 E) 1000
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases B. remains constant. C. initially increases, then decreases. D. decreases.