If the rate of return on the stock market is rm and the rate of return on a risk-free asset is rf, then
A) rm - rf measures the risk, all of it nondiversifiable, one has to accept in the stock market.
B) rm - rf measures the risk, all of it diversifiable, one has to accept in the stock market.
C) rm + rf measures the risk, all of it nondiversifiable, one has to accept in the stock market.
D) rm + rf measures the risk, all of it diversifiable, one has to accept in the stock market.
E) rm rf measures the stock market's total risk.
A
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Refer to Table 9-14. The real average hourly earnings for 1965 in 2010 dollars equal
A) $3.87. B) $5.80. C) $12.10. D) $18.14.
Until recently, many developing countries
A) encouraged foreign direct investment but discouraged foreign portfolio investment. B) sealed themselves off from foreign investment. C) were quite open to foreign investment. D) encouraged foreign portfolio investment but discouraged foreign direct investment.