Question 721
Three investors Jen, Sarah and Matt are considering two investments A & B.
Investment A is the less
risky of the two investments, requiring an outlay of $5,000 with an expected rate of return at 12%. Each investor is satisfied with this expected return. Investment B also requires an investment of $5,000 and has an expected return of 12% but appears to have considerably more variability in potential returns compared with A.
Jen now requires a return of 16%, Sarah is still satisfied with 12% and Matt seeks only an 8% expected return.
Given the information above, which of the three investors, would be considered risk-averse?
Investment A is the less
risky of the two investments, requiring an outlay of $5,000 with an expected rate of return at 12%. Each investor is satisfied with this expected return. Investment B also requires an investment of $5,000 and has an expected return of 12% but appears to have considerably more variability in potential returns compared with A.
Jen now requires a return of 16%, Sarah is still satisfied with 12% and Matt seeks only an 8% expected return.
Given the information above, which of the three investors, would be considered risk-averse?
Question 722
The nation of Economica has increased their M1 money supply by 10% over the last year by printing currency. This policy causes no price inflation. Which of the following could explain this phenomenon?
I). The nation of Islandia begins using the Economican currency as a reserve.
II). Aggregate output increases in Economica.
III). The Central Bank begins a government debt buy-back program.
I). The nation of Islandia begins using the Economican currency as a reserve.
II). Aggregate output increases in Economica.
III). The Central Bank begins a government debt buy-back program.
Question 723
A nation's comparative advantage in the production of an item is determined by:
Question 724
______ measures price appreciation or percentage change in price.
Question 725
Consider the following information about a fund. The fund has been in existence for 3 years. Over this period it has achieved a mean monthly return of 3% with a sample standard deviation of monthly returns of 5%. It was expected to earn a 2.5% mean monthly return over the 3-year period.
You want to test a claim that the investment disciplines of the fund results in a standard deviation of monthly returns of less than 6%.
The test statistic for conducting this hypothesis test is:
You want to test a claim that the investment disciplines of the fund results in a standard deviation of monthly returns of less than 6%.
The test statistic for conducting this hypothesis test is: