We can be more confident that standard deviation is a good measure of the risk of an asset (held in isolation) when
A) the number of different possible returns on the asset rises.
B) the probabilities attached to the possible returns on the asset are less equal.
C) the possible returns on the asset are distributed symmetrically around the mean.
D) the asset has a longer maturity.
C
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Starting from long-run equilibrium, an increase in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. lower; higher D. higher; potential
Rigged elections, partly free markets, and authoritarian control, as seen in countries like Russia and China, are all characteristics of what the text calls
a. "extremist theocracy." b. "systematic antiglobalization." c. "failed stateness." d. "illiberal democracy."
Jed's weekly budget for lunch is $24. He eats only pizza and burgers. Each pizza costs $6 and each burger costs$3. Jed knows that 2 pizzas and 4 burgers will give him a utility of 8. At his utility-maximizing point, Jed's utility is:
A. 8 B. 4 C. 6 D. 10
Which of the following was not a contributing factor to the housing market boom of the 2000s?
A. Mortgages with no or little money down B. Scant concern given to people's ability to meet the mortgage payment C. Low interest rates D. The merging of large banks giving them more assets