Which of the following statements best describes the relationship between risk and the average expected return of investments?
A. Less risky assets will have similar average expected rates of return to more risky assets
B. Less risky assets will have higher average expected rates of return than more risky assets
C. More risky assets will have higher average expected rates of return than less risky assets
D. More risky assets will have lower average expected rates of return than less risky assets
C. More risky assets will have higher average expected rates of return than less risky assets
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One of the main tools economists use to analyze strategic behavior is
A) the Herfindahl-Hirschman Index. B) game theory. C) cartel theory. D) the collusion index. E) dual theory, which is used to study duopolies.
All these are characteristics of a monopoly except,
a. There is one seller of the product b. Has few substitutes c. Controls a large share of the market d. Controls a small share of the market