Mean reversion refers to the fact that
A) small firms have higher than average returns.
B) stocks that have had low returns in the past are more likely to do well in the future.
C) stock returns are high during the month of January.
D) stock prices fluctuate more than is justified by fundamentals.
B
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Which of the following is a key determinant of the price elasticity of supply?
A) the available technology B) the availability of substitutes in production C) the time it takes to change output in response to a change in price D) the slope of the supply curve
Why might firms pay an efficiency wage rather than a market-clearing wage?
What will be an ideal response?
The t-statistic is computed by
A) dividing the regression coefficient by the standard error of the estimate. B) dividing the regression coefficient by the standard error of the coefficient. C) dividing the standard error of the coefficient by the regression coefficient. D) dividing the R2 by the F-statistic.
One of the ways that a perfectly competitive firm and a nondiscriminating monopolist are different is that
a. the marginal cost curve is U-shaped for a perfectly competitive firm but not for a monopolist b. P = AR for a perfectly competitive firm but not for a monopolist c. P = MR for a perfectly competitive firm but not for a monopolist d. the average revenue curve and demand curve are the same for a perfectly competitive firm but not for a monopolist e. only the monopolist seeks to maximize profits