A technique that can be employed to make a portfolio less risky than any of its individual securities is
A. plowback.
B. diversification.
C. programmed trading.
D. speculation.
Answer: B
Economics
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A monopolistic competitor has fixed costs of $100 and marginal costs of $10 per unit. What is its average cost of producing 100 units?
a. $10 b. $11 c. $1,100 d. $2,000
Economics
Suppose a Treasury bond will mature in 4 years. If the bond pays a coupon of $425 per year and will make a final par value payment of $10,000 at maturity, what is its price if the relevant market interest rate is 4%?
What will be an ideal response?
Economics