The objective of diversification is to reduce risk. How does a person diversify a stock portfolio? How is risk measured?
Buying stocks in a number of companies. The standard deviation of the return.
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Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. The GDP Price Index rises, and nominal value of the domestic currency rises. c. The GDP Price Index falls, and nominal value of the domestic currency rises. d. The GDP Price Index rises, and nominal value of the domestic currency remains the same. e. The GDP Price Index rises, and nominal value of the domestic currency falls.
Discouraged workers are included in the
A. labor force category. B. unemployed category. C. not in the labor force category. D. employed category.