Ben owns stock in two similar, large, financially sound corporations. Company A consistently earns rates of return of 12 percent per year, while company B regularly generates rates of return of 8 percent per year. If Ben is attempting to arbitrage, he
will:
A. sell his stock in company B and buy more stock in company A.
B. sell his stock in company A and buy more stock in company B.
C. keep his portfolio balanced with an equal or nearly equal number of shares of each stock.
D. buy stock in other companies in an effort to diversify and minimize risk.
A. sell his stock in company B and buy more stock in company A.
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For country A, an export is a good produced in
A) country B and purchased by residents of country A. B) country A and purchased by residents of country A. C) country B and purchased by residents of country B. D) country A and purchased by residents of country B.
The velocity of money can best be described as
A) how quickly prices are increasing. B) how quickly output is increasing. C) the number of times each dollar in the money supply is used to buy goods and services included in GDP. D) the growth rate of the money supply.