In an efficient market, an average investor who is outside Wall Street
A. cannot expect to get average returns.
B. must be constantly vigilant by analyzing and adjusting their portfolio to get average returns.
C. will habitually exceed average returns.
D. will get average returns in a well-diversified portfolio even without analyzing or managing it.
Answer: D
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Economies of scale tend to create natural monopolies
a. True b. False Indicate whether the statement is true or false
Compared to a perfectly competitive industry, a monopoly produces a smaller output and charges a higher price
a. True b. False Indicate whether the statement is true or false
Economic models
A) are used to explain how people think. B) are used to explain how people behave. C) are essential representations of the real world. D) are used to explore the thought processes of individuals or groups.
In the figure above, the decrease in the interest rate from i1 to i2 can be explained by
A) a decrease in money growth. B) a decline in the expected price level. C) an increase in income. D) an increase in the expected price level.