A Ponzi scheme has the following characteristics, except:
A. It promises a much higher expected return relative to the investment risk involved
B. It seems to involve a significantly lower risk relative to the expected returns promised
C. Its implied risk-return combination (or point) lies below the security market line
D. Trust plays a very important role, with investors believing in the promoter's ability to somehow prevent arbitrage
C. Its implied risk-return combination (or point) lies below the security market line
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Market consumer surplus at any price
a. is the area above the market supply curve and below the market demand curve b. is the area below the market supply curve and above the market demand curve c. is the area under the demand curve and above the market price d. is that price multiplied by the number of units demanded e. is the number of units demanded multiplied by the cost of producing them.
Which of the following is NOT an objective of economic regulation?
A) to regulate the prices enterprises are allowed to charge B) to fix prices so that they are never allowed to rise C) to keep rates of return in an industry at a competitive level D) to prevent monopoly profits