Explain why returns on assets compensate for systematic risk but not for idiosyncratic risk.
What will be an ideal response?
Idiosyncratic risk can be reduced through diversification. Systematic risk cannot since it affects all assets.
Economics
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Which of the following statements is incorrect? a. Advertising can lower the costs to consumers of acquiring information
b. Advertising tends to increase competition in imperfectly competitive industries. c. Even though advertising increases total production costs, it may indeed provide a useful service to consumers. d. Advertising is only useful as a way to manipulate consumer tastes.
Economics
In most rich countries, adult citizens typically have a
A. primary education. B. secondary education. C. higher education. D. graduate-level education.
Economics