In the long-run, a monopoly is most likely to achieve

If market participants rely only past stock prices to forecast future stock prices,

A) they will be better able to forecast future price increases than future price decreases. B) they will be better able to forecast future price decreases than future price increases. C) they have adaptive expectations. D) they have rational expectations.

Which of the following is NOT a result of the ability of investors to hedge?

A) increased access to funds by firms and households B) investors are more willing to invest C) increased risk aversion D) slower economic growth