Professor Jeremy Siegel, of the University of Pennsylvania, conducted research that showed that:
A. over the long run, stocks have been less risky than bonds.
B. over the long run, bonds frequently outperform stocks.
C. investors should only own stocks for short periods of time to maximize returns.
D. over the long run, bonds have been less risky than stocks.
Answer: A
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One suggested method of reducing excessive risk-taking by SIFIs is to require them to hold ________ capital when credit is expanding rapidly and ________ capital when credit is contracting
A) less; more B) more; no C) more; less D) less; no
As more and more resources are dedicated to an activity
a. the benefits will increase proportionately. b. the benefits will become smaller and smaller while the costs will rise. c. the demand for that activity will increase. d. the costs will be offset by the benefits received from the activity.
?The formula for "expected value" may be written as
A. ?(Probability of state A + Value in state A) × (Probability of state B + Value in state B) B. ?(Probability of state A × Value in state A) + (Probability of state B × Value in state B) C. ?(Probability of state A × Value in state A) – (Probability of state B × Value in state B) D. ?(Probability of state A – Value in state A) × (Probability of state B – Value in state B)
Suppose Toor's beer is sold in a monopolistically competitive market. If the price of Toor's is currently $2 and the average cost of producing Toor's is $1, in the long run we can expect:
A. the demand for Toor's beer to increase. B. the price of Toor's beer to decrease, and the average cost of producing Toor's to increase. C. the demand curve for Toor's beer to become horizontal. D. no change in the price or average cost of producing Toor's beer.