The objective of diversification is to reduce risk. How does a person diversify a stock portfolio? How is risk measured?
Buying stocks in a number of companies. The standard deviation of the return.
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For a given nominal exchange rate and foreign price level, an increase in the domestic price level ________ the real exchange rate.
A. offsets any change in B. increases C. may either increase or decrease D. decreases
Consider two individuals: John and Jenna. John has an opportunity cost of time equal to $50 per hour, while Jenna has an opportunity cost of time equal to $25 per hour
Which of the two individuals has a greater incentive to look for work when unemployed?
Suppose there are 100 million in the labor force, and 6 million unemployed people. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total of employed persons is ________ and the new unemployment rate is ________
A) 100.1 million; 5.8 percent B) 100 million; 6.1 percent C) 94.1 million; 5.9 percent D) 93.9 million; 6.1 percent
Both monetary policy and fiscal policy shift the aggregate demand curve.
a. true b. false