Assume a portfolio in which there is equal investment in two assets that are perfectly negatively correlated, with equally expected returns of 10 percent and 6 percent for asset A and 8 percent and 4 percent for asset B
The expected yield on this portfolio is A) 8 percent.
B) 7 percent.
C) 6 percent.
D) 5 percent.
B
Economics
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Unemployment
a) falls when households save a larger fraction of their income. b) moves in the opposite direction as real GDP. c) rises during expansions. d) decreases as production falls.
Economics
Regulated natural monopolies can obey a marginal cost pricing rule and still make a normal profit by engaging in
A) least cost pricing and average cost pricing. B) price discrimination and two-part tariff pricing. C) zero profit pricing. D) profit-maximizing pricing. E) None of the above answers is correct because a natural monopoly regulated using a marginal cost pricing rule always incurs an economic loss.
Economics