David increases the number of companies in which he holds stocks
a. This reduces risk's standard deviation and firm-specific risk.
b. This reduces risk's standard deviation and market risk.
c. This raises market risk, but lowers firm-specific risk. What happens to overall risk is unclear.
d. This raises firm-specific risk, but lowers market risk. What happens to overall risk is unclear.
a
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Why is price discrimination legal but not discrimination based on race or gender?
A) because price discrimination enables firms to increase output and employment, but race- or gender-based discrimination reduces employment B) because price discrimination reduces deadweight loss, but discrimination based on race or gender increases deadweight loss C) because price discrimination involves charging people different prices based on their willingness to pay rather than on the basis of arbitrary characteristics D) because price discrimination increases profits and therefore tax revenues for the government, but discrimination based on race or gender reduces tax revenues
How do countries know when they have a comparative advantage in the production of a good?
A) Government accountants collect cost data from countries and analyze it to find out which country has a comparative advantage in the production of which good. B) They know as the result of individuals trying to earn profits and buying low and selling high in the process. C) The United Nations Economic Conference Group analyzes cost data from countries and determines which country has a comparative advantage in the production of which good. D) There is not one major way that countries acquire this information.