The expected return from a portfolio made up equally of two assets that move perfectly opposite of each other would have a standard deviation equal to:
A. 1.0
B. 0.0
C. 0.5
D. -1.0
Answer: B
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Competition would probably be abolished if society could find a way to abolish
A) inequality. B) scarcity. C) money. D) economists.
If a perfectly competitive firm decides to shut down in the short run, its loss will equal its
A) minimum average variable cost, AVC. B) total variable cost, TVC. C) total fixed cost, TFC. D) average total cost, ATC.
In the IS-LM model, an easy monetary in conjunction with a tight fiscal policy
a. increases exports and decreases imports. b. decreases exports and increases imports. c. encourages foreign capital inflows to the U.S. d. both b and c. d. None of the above
When the government taxes labor earnings we can expect people to
a. work more so they can keep the same standard of living. b. work less and enjoy more leisure. c. quit their present job and find one that pays better. d. stop working altogether and go on welfare.