Which of the following is correct concerning diversification?
a. It only reduces firm-specific risk, but most of the reduction comes from increasing the number of stocks in a portfolio to well above 30.
b. It only reduces firm-specific risk; much of the reduction comes from increasing the number of stocks in a portfolio from 1 to 30.
c. It only reduces market risk, but most of the reduction comes from increasing the number of stocks in a portfolio to well above 30.
d. None of the above is correct.
b
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The word “theory” means the same to the scientist as it does to the man on the street.
Answer the following statement true (T) or false (F)
Government decisions tend to be biased toward actions that have
a. current costs and future benefits that are both easily observable. b. future costs that are difficult to identify and current benefits that are easily observable. c. future costs and future benefits that are both difficult to identify. d. current costs that are easily observable and future benefits that are difficult to identify.
What is the most probable reason why garbage men have higher wages than waiters?
A. Marketplace discrimination B. Active unionization in the garbage collection field C. Higher demand for garbage men than nurses D. The nonmonetary attractiveness of garbage collection causing fewer people to want to be garbage men
Which of the following is NOT a factor of production?
A.) A toll-bridge across a lake. B.) The money hidden in an old basement. C.) A wrecking ball used to tear down old buildings. D.) The CEO of a large corporation.