Before being adjusted for costs:
A. actively managed funds outperform index funds.
B. actively managed funds and index funds perform about the same.
C. index funds outperform actively managed funds.
D. arbitrage equalizes the average expected rates of return and beta levels on index and
actively managed funds.
B. actively managed funds and index funds perform about the same
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The International Maritime Bureau said the waters off Somalia are the world's most dangerous, accounting for nearly a third reported pirate attacks worldwide. Suppose all boats are insured to $100,000 and pay a premium of $10,000 each
Suppose 10 out of 100 boats are attacked by pirates and these 10 file claims with their insurance. If the insurance company's only costs are the claims it must pay, has the insurance company earned an economic profit? A) Yes, they earned an economic profit of $90,000. B) No, they broke even. C) No, they sustained an economic loss of $90,000. D) Yes, they earned an economic profit of $1,000,000.
Refer to Figure 16-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, Congress and the president would most likely pursue
A) expansionary fiscal policy. B) expansionary monetary policy. C) contractionary fiscal policy. D) contractionary automatic stabilizers. E) contractionary monetary policy.
Which of the following is the best example of a variable cost?
a. monthly wage payments for hired labor b. annual property tax payments for a building c. monthly rent payments for a warehouse d. annual insurance payments for a warehouse
In recent years, U.S. foreign aid has been:
A. less than 1 percent of its output. B. about 2 percent of its output. C. about 3 percent of its output. D. about 5 percent of its output.