In general, financial assets that have a(n) _______ amount of risk have a _________ rate of return.
A. higher; higher
B. higher; lower
C. lower; higher
D. equal; higher
A. higher; higher
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Suppose that a mutual fund, Washington Peak Strategic Bond Fund, believes it has hit upon a winning investment strategy.The fund uses an active management strategy to try to outperform the bond market
According to Washington Peak's prospectus, investors need to pay fees of 2 percent annually.Based on the historical success of their active investment strategy, the strategy is projected to generate annual returns (once fees are paid) of 8 percent. A friend of yours is considering investing in Washington Peak and asks you for investment advice. What would you suggest?
Within the framework of the AD-AS model, an increase in savings by households will
a. increase the supply of loanable funds and reduce interest rates. b. be offset by a decrease in savings by businesses. c. cause long-run fluctuations in the rate of consumption. d. result in a decline in aggregate demand, output, and employment.
Economic integration
A. occurs when countries are granted most-favored-nation status. B. occurs when one country voluntarily agrees to reduce its exports to another country. C. occurs when two or more nations join to form a free-trade zone. D. occurs when countries develop an acquired comparative advantage that makes their industries more competitive in international markets.
Refer to the figure above. Calculate the total surplus in Lithasia under free trade
A) $150 B) $250 C) $325 D) $375