If an investor owns a well-diversified portfolio, then:
A. His portfolio does not involve any risk
B. The idiosyncratic risk in his portfolio is minimized
C. The systemic risk in his portfolio is minimized
D. His portfolio will have the highest expected return
B. The idiosyncratic risk in his portfolio is minimized
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A firm's shutdown point is the output and price at which the firm's total revenue just equals its total variable cost
Indicate whether the statement is true or false
In reading the stock market quotes in the newspaper, the column with the heading "P/E" gives the
A. number of shares of the stock traded that day. B. dividend per share divided by the closing price per share. C. stock symbol for the company. D. latest closing price per share divided by the latest available earnings per share.
Successful activist stabilization policy presumes that
A) the timing of policy impacts on nominal GNP are known. B) the magnitude, size of impacts, are known. C) the timing and magnitude of the impact of AD disturbances are known, forecasted with precision. D) All of the above.
Which one of the following is not a source of market failure?
A. price increases B. public goods C. externalities D. imperfect information