Other things the same, as the number of stocks in a portfolio rises,
a. risk increases and the standard deviation of the return rises.
b. risk increases and the standard deviation of the return falls.
c. risk decreases and the standard deviation of the return rises.
d. risk decreases and the standard deviation of the return falls.
d
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Did the 1957 Treaty of Rome turn the EU into a truly unified market?
A) Yes, it paved the way for the current EMU. B) No, although it established a customs union, it failed to remove barriers to the movement of goods and factors within Europe. C) No, it was only after the German unification and locating the ECB in Frankfurt that unity was achieved. D) No, since the Northern members of the EU had larger endowments of capital and skilled labor. E) No, the Treaty of Rome created more trade barriers between European countries.
Assume a certain competitive price-taker firm is producing Q = 1,000 units of output. At Q = 1,000 . the firm's marginal cost equals $15 and its average total cost equals $11 . The firm sells its output for $12 per unit. To maximize its profit, the firm should
a. increase its output. b. continue to produce 1,000 units. c. decrease its output, but continue to produce. d. shut down.
(Consider This) An otherwise unprofitable motel located on a largely abandoned roadway might be able to stay open for several years by:
A. increasing its nightly room rates. B. reducing or eliminating its annual maintenance expenses. C. charging room rates that exceed marginal revenue. D. eliminating its fixed costs, including its opportunity costs.
Refer to the graphs below. They show the long-run average total cost (LRATC) for a product. For which graph would a firm NOT be experiencing diseconomies of scale?
A. Graph A
B. Graph B
C. Graph C
D. Graph D