Which of the following is not correct?
a. A risk averse person might be willing to hold stocks.
b. Other things the same, a portfolio with the stocks of a large number of companies has less risk.
c. Other things the same, the larger a portion of savings a person invests in stocks, the greater his expected return.
d. Diversification can eliminate market risk but not firm-specific risk.
d
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In rate-of-return regulation, a monopoly is required to have zero
a. profit. b. rent. c. producer's surplus. d. deadweight loss.
List the three major sources from which households derive their incomes
What will be an ideal response?
Consistent with the mercantilist theory, the colonies had
(a) a trade deficit with England. (b) a trade surplus with England. (c) a balance of trade with England. (d) about an equal number of annual trade deficits and surpluses over the years.
The primary current deficit is
A. the current deficit minus tax revenues. B. the current deficit minus net interest. C. the deficit minus tax revenues. D. the deficit minus net interest.