In order to benefit from diversification, the returns on assets in a portfolio must:
A. be perfectly negatively correlated.
B. have the same idiosyncratic risks.
C. be perfectly positively correlated.
D. positively correlated but not perfectly.
Answer: D
Economics
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Which of the following is a tool used by the Fed in the conduct of monetary policy?
A) changes in the prime rate B) issuing new government bonds and retiring old ones C) buying and selling corporate bonds D) buying and selling federal government bonds
Economics
While waiting in line to buy two tacos at 75 cents each, and a medium drink for 80 cents, Emma notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50 . For Emma, the marginal cost of purchasing the third taco would be
a. zero. b. 20 cents. c. 75 cents. d. 80 cents.
Economics