In the first-order condition for portfolio selection, explain the meaning of equilibrium
What will be an ideal response?
The aggregate demand and supply of assets will be equal. Given an investor's chosen portfolio and the market prices for assets, investors will not change their investment position. If not true, high valuation investors would buy from low valuation investors and create equilibrium.
You might also like to view...
Discuss and exemplify why speaking about ideas is particularly challenging.
What will be an ideal response?
Brooklyn is using the computer to organize documents needed for an upcoming meeting. After the documents are organized into files on the computer, Brooklyn will email the documents to meeting participants. Brooklyn is using _______ skills to complete this task.
A. technical B. human relations C. conceptual and design D. business E. documentation
Which of the following would be the best measure of performance for a profit center?
A) Residual income B) Return on investment (ROI) C) Segment margin D) Economic value added (EVA)
Which of the following is NOT part of the three-step process to preparing a spoken or written business message?
a. Identify the central idea of the message. b. Determine the likely receiver reaction to the message. c. Choose either an inductive or deductive approach. d. Determine the approach that you as the sender prefer.