Amanda talks with several different brokers at a social gathering. She hears the following advice from brokers A, B, and C. Which broker, if any, gave her incorrect advice?
a. Broker A: "There are risks in holding stocks, even in a highly diversified portfolio.".
b. Broker B: "Portfolios with smaller standard deviations have lower risk.".
c. Broker C: "Stocks with greater risks offer lower average returns.".
d. They all gave her correct advice.
c
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Suppose GDP ________ the level of potential output. We would expect to see ________ unemployment, rising wages, and rising prices.
A. exceeds; low B. is? below; low C. is? below; high D. exceeds; high
GDP does not measure the economic well-being of a nation because:
a. some things which contribute to well-being have no price tag b. GDP places no value on leisure c. ecological costs are not netted out of GDP d. All of the above are correct.
Which of the following will discourage investment?
a. well-defined property rights b. monetary instability c. a low and steady rate of inflation d. low tax rates
A monopsonist is currently employing 50 workers at $10 an hour. It wants to hire an additional worker, but will have to pay the worker $10.10. The marginal factor cost is
A. $10.00. B. $15.10. C. $10.10. D. ten cents.