Samantha holds stocks in four companies. If she adds stocks of several more companies she will decrease
a. firm specific risk and market risk.
b. firm specific risk but not market risk.
c. market risk but not firm specific risk.
d. neither firm specific nor market risk.
b
Economics
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In a monopolistically competitive scenario, as more firms enter into the industry, the long run demand curve for most firms will tend to become: a. more inelastic. b. vertical
c. horizontal. d. more elastic.
Economics
In the rational expectations model, government control over aggregate demand
a. can affect real output only if policies are unexpected. b. has potential to change real output as long as aggregate supply is vertical. c. gives it the ability to change real output and employment. d. does not influence the economic behavior of individuals.
Economics