If a stock or bond is risky
a. risk averse people may be willing to hold it as part of a diversified portfolio.
b. risk averse people may be willing to hold it if the expected return is high enough.
c. both A and B are correct.
d. risk averse people will not hold it.
c
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Economics is best defined as the social science that studies
A) how a person can get everything he or she wants. B) how choices made in the social interest must conflict with choices made in the self-interest. C) the way to eliminate choices in our decisions. D) the choices that societies, and the people and institutions that make up societies, make in dealing with the issue of scarcity. E) the reason money exists.
If you pay $4,888 for a $5,000 face value one-year Treasury bill, what is the rate of interest you will receive?
A) 1.02% B) 2.29% C) 4.46% D) 9.78%
One of the solutions to the adverse selection problem in insurance is
a. Is to require that only the high risk individuals to buy insurance b. Is to require that only the low risk individuals buy insurance c. Is to require everyone to buy insurance d. Is to completely ban insurance companies
What type of industry is the market for grocery products? Is over-capacity present?