A. increasing the rate of return within their portfolio
B. diversifying their portfolio
C. All of these answers help reduce risk
D. buying insurance
Related Mcqs:
- The normal rate of profit for relatively risk-free firms will be _________ the interest rate on risk-free government bonds?
A. approximately one-half
B. smaller than
C. larger than
D. approximately equal to - If people are risk averse, then ?
A. None of these answers are true
B. All of these answers are true
C. They dislike bad things more than the like comparable good things
D. The utility they would lose from losing a Rs50 bet would exceed the utility they would gain from winning a Rs 50 bet
Their utility function exhibit the property of diminishing marginal utility of wealth - If the consumption of good by one person does not reduce the quantity available by others and nobody can be easily excluded from consumption, we are referring to a ?
A. Private good
B. merit good
C. public good
D. abundant good - Which of the following is an example of government policy that could reduce inflation ?
A. increasing bank lending
B. increasing import duties
C. reducing government expenditure
D. None of these - Which of the following is will NOT reduce capital flight from source countries ?
A. dependable positive real interest rates
B. higher taxes on capital gains
C. more efficient state enterprises
D. market liberalization - Suppose an industry emits a negative externality such a pollution and the possible methods to internalize the externality are command-and-control policies, pigovian taxes, and tradable pollution permits. If economists were to rank these methods for internalizing a negative externality based on efficiency ease of implementation and the incentive for the industry to further reduce pollution in the future, they would probably rank them in the following order (from most favored to least favored) ?
A. Pigouvian taxes, command-and-control policies, tradable pollution permits.
B. tradable pollution permits, Pigouvian taxes, command-and-control policies
C. tradable pollution permits command-and-control policies, Pigovian taxes.
D. command-and-control policies, tradable pollution permits, Pigovian taxes.
E. They would all rank equally high because the same result can be obtained from any one of the policies - Which of the following reduces risk in a portfolio the greatest ?
A. Increasing the number of shares from 10 to 20
B. All of these answers provide the same amount of risk reduction
C. Increasing the number of shares in the portfolio from 1 to 10
D. Increasing the number of shares from 20 to 30 - Which of the following is a price that is equal to the face value of a security ?
A. Balanced
B. At Equilibrium
C. At Par
D. None of them - What would reduce the role of central planning in a economy ?
A. Increasing government spending
B. Increasing public ownership of firms
C. Increasing the role of markets
D. Removing the profit motive - The government increase government spending to try to reduce unemployment This is an example of ?
A. laissez-faire.
B. monetary policy
C. fine tuning
D. automatic stablisers
