The largest component of national income is:

Assume a portfolio in which there is equal investment in two assets that are perfectly negatively correlated, with equally expected returns of 10 percent and 6 percent for asset A and 8 percent and 4 percent for asset B

The expected yield on this portfolio is A) 8 percent. B) 7 percent. C) 6 percent. D) 5 percent.

In the short run, a firm will eventually experience rising per-unit costs because of:

a. economies of scale. b. diseconomies of scale. c. the law of supply. d. the law of diminishing returns.