An investor with a diversified portfolio is generally less concerned about:
A. the diversifiable risk of potential new investments.
B. rates of return of potential new investments.
C. the nondiversifiable risk of potential new investments.
D. recessions.
A. the diversifiable risk of potential new investments.
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If a good has an absolute price elasticity of 0, the demand for the good is
A) unit elastic. B) inelastic. C) perfectly inelastic. D) elastic.
When the monopoly insurer cannot observe the care taken by the insured party to avoid an accident, the most profitable contract for it:
a. offers full insurance at a higher price than the full-information policy. b. offers full insurance at a lower price than the full-information policy. c. offers partial insurance at a higher price than the full-information policy. d. offers partial insurance at a lower price than the full-information policy.