Diversification
a. increases the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is higher.
b. increases the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is lower.
c. reduces the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is higher.
d. reduces the likely fluctuation in a portfolio's return. Thus, the likely standard deviation of the portfolio's return is lower.
d
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For a linear demand curve, where is the amount of total expenditures on a good maximized?
What will be an ideal response?
Aggregation allows economists to ________ at the cost of ________.
A. make normative statements; ignoring positive analysis B. see the details; obscuring the big picture C. see the big picture; obscuring the details D. make positive statements; ignoring normative analysis