A stock mutual fund's primary advantage is to allow
A) investors to diversify away systematic risk.
B) investors to diversify away all risk.
C) investors to diversify away idiosyncratic risk.
D) the rich to avoid taxes.
C
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Investment spending includes spending on:
A. consumer durable goods. B. stocks and bonds. C. services. D. new capital goods.
Government-produced goods are added to GDP at
A. their market value. B. the value they have to their users. C. the value of the inputs used to produce them. D. the value Congress places on them.
As government becomes larger and larger as a share of the economy, economic growth is likely to decline because
a. taxes are reduced to levels that are inconsistent with economic efficiency. b. governments are involved in many activities for which they are ill-suited. c. tax-transfer activities are reduced and sometimes virtually eliminated. d. governments do not spend enough on the provision of key public goods like education.
When national income in other nations decreases, aggregate:
A. demand increases. B. supply decreases. C. demand decreases. D. supply increases.