If an investor holds two risky assets with a perfect negative correlation, then risk
A) falls to zero.
B) is increased.
C) is unaffected.
D) is reduced by 50 percent.
A
Economics
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When a nation has no funds to finance economic development, how can it acquire the needed funds? Is the country a net lender or a net borrower?
What will be an ideal response?
Economics
When a market is characterized by an externality, the government
a. can correct the market failure only in the case of positive externalities. b. can correct the market failure only in the case of negative externalities. c. can correct the market failure in the case of both positive and negative externalities by inducing market participants to internalize the externality. d. cannot correct for externalities due to the existence of patents.
Economics