You are certain that a normal rate of return is 18% for the computer industry. What do you expect for a normal rate of return in the computer software industry, which is considered to be much riskier than the computer industry?

Suppose you purchase a call option with a strike price of $85 for an options price of $10 How much profit will you earn if you exercise it when the price is $100?

What will be an ideal response?

In cases of natural monopoly, it is best to have only one firm producing all of the output in a market

a. True b. False Indicate whether the statement is true or false