A mutual fund that purchases a wide variety of stocks will
A) eliminate systematic risk.
B) minimize nonsystematic risk.
C) minimize market risk.
D) minimize default risk.
B
You might also like to view...
Workers who dislike risk
A) prefer to be paid a salary rather than a wage. B) prefer a salary system to a commission compensation system. C) prefer to be paid monthly rather than weekly or daily. D) prefer a piece-rate compensation system to a salary system.
The open economy multiplier is calculated as follows:
A) 1/[1-(marginal propensity to consume + marginal propensity to invest)] B) 1/[1-(marginal propensity to consume + marginal propensity to import)] C) 1/[1-(marginal propensity to consume + marginal propensity to invest + marginal propensity to import)] D) 1/[1-(marginal propensity to consume + marginal propensity to invest - marginal propensity to import)]