The risk premium that risk averse investors will demand on a security will be in proportion to the __________ of the portfolio
A) systematic risk
B) nonsystematic risk
C) risk of the worst case return
D) diversification
A
You might also like to view...
Give some examples of transactions in markets which are not regulated or controlled
What will be an ideal response?
The above figure shows the reaction functions for two pizza shops in a small isolated town. The perfect competitive outcome is that
A) each firm produces 40 pizzas. B) each firm produces 50 pizzas. C) the firms split the production of 200 pizzas. D) each firm produces 200 pizzas.
When a transfer price is set lower
a. the costs of the division using the intermediate product will fall b. the profits of the division using the intermediate product will be unaffected c. the profits of the division using the intermediate product will fall d. the profits of the division using the intermediate product will rise
If the demand curve for a product is vertical, then
A) the demand for the product is elastic. B) the demand for the product is perfectly elastic. C) only a certain amount of the product will be consumed regardless of price. D) the price elasticity of the product approaches zero.