Suppose an investor equally allocates their wealth between a risk-free asset and a risky asset. If the MRS of the current allocation is less than the slope of the budget line, then the investor should:
A) shift more of their wealth to the risky asset.
B) shift more of their wealth to the risk-free asset.
C) keep the same asset allocation.
D) We do not have enough information to answer this question.
A
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Refer to the diagram, assuming that the firm represented is operating on curve TC 0 . What is the user cost of extracting a unit of this resource?
A. $20.
B. $40.
C. $60.
D. It cannot be determined with the information given.
Refer to the table. A merger between Firm 2 and Firm 3 in Alpha would be a:
Answer the question on the basis of the following table showing market shares of firms in hypothetical industries. Assume these are distinct industries with no buyer-seller relationships or competition among them.
A. vertical merger.
B. horizontal merger.
C. diagonal merger.
D. conglomerate merger.