Aggregation reduces the standard deviation of demand only if demand across the regions being aggregated is not perfectly positively correlated

Indicate whether the statement is true or false.


Answer: TRUE

Business

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Suppose the earnings per share of a stock is $2 and the current price/earnings (P/E) ratio is 10. What is the current price of the stock?

A. $5 B. $8 C. $20 D. $40 E. $35

Business

Although they represent fewer than 1 percent of all transnational corporations, ________ transnationals account for more than 11 percent of the world's foreign direct investment.

Fill in the blank(s) with the appropriate word(s).

Business

Which of the following statements is not true of mobile housing?

A) Mobile homes typically decrease in value with age. B) Most mobile homes are permanently affixed to a housing site. C) Mobile homes generally receive the same type of financing as traditional single family dwelling units. D) Construction costs per square foot are considerably less than for on-site construction.

Business

In Eastern Europe, interunion competition has resulted from:

A. The emergence of new competition in industry. B. The emergence of independent labor unions. C. A rise in general population density. D. Increased international union involvement from the U.S.

Business