Samantha holds stocks in four companies. If she adds stocks of several more companies she will decrease
a. firm specific risk and market risk.
b. firm specific risk but not market risk.
c. market risk but not firm specific risk.
d. neither firm specific nor market risk.
b
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How does the economist's measure of profit differ from the accountant's measure?
A) Economists subtract total revenue from total cost; accountants do the opposite. B) Economists subtract total costs from total revenue; accountants do the opposite. C) Economists consider more sources of monetary revenue than accountants do. D) Economists include all opportunity costs, accountants don't. E) There is no difference between the two measures.
Higher prices for scarcer resources can improve the efficiency of an economy.
Answer the following statement true (T) or false (F)
In the long run, entry and exit in a perfectly competitive market will drive the price to the point where the: a. marginal cost curve intersects the average total cost curve at its minimum
b. marginal cost curve intersects the marginal revenue curve. c. marginal cost curve intersects the average variable cost curve at the shutdown point. d. marginal cost curve intersects the market demand curve.
The trade balance for the United States equals
A. The difference between the dollar value of exports and the dollar value of imports. B. Exports plus imports. C. The current account balance minus the capital account balance. D. The difference between service exports and service imports.