Kyle puts a greater proportion of his portfolio into government bonds. Kyle's action
a. increases both risk and the average rate of return.
b. decreases both risk and the average rate of return.
c. increases risk, but decreases the average rate of return.
d. decreases risk, but increases the average rate of return.
b
Economics
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If the paint on your house was eaten away by the fumes from a factory nearby and you hired a lawyer to sue the polluting firm, your legal fees would be considered
A) marginal benefits. B) social costs of the pollution. C) external costs. D) transactions costs.
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Which of the following tests can be used to check for cointegration between two series?
A. Wald test B. Breush-Pagan test C. White test D. Engle-Granger test
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