The main reason for diversification for an investor is to:
A. lower transaction costs.
B. take advantage of the fact that returns on assets are not perfectly correlated.
C. take advantage of the fact that returns of assets are perfectly positively correlated.
D. gain from the greater returns that come from greater risk.
Answer: B
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Ticket “scalping” is an example of
A. experimental economics. B. the limitation of the volume of transactions. C. the development of a black market. D. favoritism.
Due in part to record low interest rates on U.S. Treasury Bonds,
A) investors searching for higher yields bought corporate bonds B) interest rates on corporate bonds rose C) corporations faced higher borrowing costs D) many corporations were at greater risk of defaulting
Demand curves can be affected by the prices of related goods
a. True b. False Indicate whether the statement is true or false
Which of the following would shift the demand for loanable funds to the right?
a. income tax increases b. government expenditures increase c. the interest rate falls d. Congress and the president pass an investment tax credit