Environmental policies like corporate average fuel economy (CAFE) standards and mandatory technology like catalytic converters _____________________ fuel consumption and emissions without necessarily _________________ the number of automobiles sold.

Fact: Very few skyscrapers are found on rural farmlands, far outside the city. Why?

A) As opposed to city property, farmland cannot support a skyscraper's tremendous weight per square foot. B) Skyscrapers would spoil the view of the rural landscape. C) The opportunity cost of building skyscrapers in rural areas is too high. D) There are far too many dangers involved.

Because most asset yields are affected in a systematic way by economic conditions, most securities in portfolios

A) have a covariance greater than zero. B) have negative yields. C) have covariance greater than one. D) increase in risk as new assets are added.