People who are risk averse
A) value a collection of assets only on the basis of its expected returns.
B) value a collection of assets only on the basis of the risk of that return.
C) value a collection of assets not only on the basis of its expected returns but also on the basis of the risk of that return.
D) are less likely to invest in life insurance.
E) are less likely to have a diverse portfolio.
C
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To determine the change in the capital stock, the level of new investment must be adjusted for depreciation because some new investment
A) is not used immediately. B) replaces existing workers. C) is more efficient than existing capital. D) merely replaces existing, but worn out, capital.
Which of the following is NOT part of the shadow banking system?
A) the transformer B) the servicer C) the bundler D) the distributor
If the dollar appreciates with respect to the euro, this means that
A. a European vacation for an American will be more expensive. B. it takes fewer dollars to buy the same amount of euros. C. it takes more dollars to buy the same amount of euros. D. it takes the same number of dollars to buy the same number of euros.
Refer to the information provided in Figure 9.2 below to answer the question(s) that follow.
Figure 9.2Refer to Figure 9.2. If demand for wheat is D3, then a profit-maximizing firm will produce ________ units and earn ________.
A. 12; negative profits B. 13; exactly a normal return C. 15; positive profits D. 9; positive profits