Assume that a security has equally possible outcomes of yielding 8 percent and 4 percent. The standard deviation of the probability distribution of returns for this security is

How will the exchange rate (foreign currency per dollar) respond to an increase in preference for imported goods in the United States in the long run?

A) Exchange rates will be unaffected by changes in the relative rate of productivity growth in the United States, both in the short run and in the long run. B) Exchange rates will fall. C) Exchange rates will rise. D) The exchange rate will be affected in the short run, but not in the long run.

Bonds with ________ tend to have higher interest rates than bonds with ________

A) high liquidity; low liquidity B) high default risk; low default risk C) shorter maturity; longer maturity D) low tax burdens on their interest; high tax burdens on their interest