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If people are risk averse, then ?

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

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Economics Mcqs, Risks And Diversification & Efficient Market Hypothesis

An increase in the prevailing interest rate ?

An increase in the prevailing interest rate ?

A. increases the present value of future returns from investment and increases investment
B. decreases the present value of future return from investment and decreases investment
C. decreases the present value of future returns from investment and increase investment
D. increases the present value of future returns from investment and decreases investment

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Economics Mcqs, Risks And Diversification & Efficient Market Hypothesis

If a depositor puts Rs100 in a bank amount that earns 4 percent interest compounded annually, how much will be in the account after five years ?

If a depositor puts Rs100 in a bank amount that earns 4 percent interest compounded annually, how much will be in the account after five years ?

A. Rs400.00
B. Rs 104.00
C. Rs 121.67
D. Rs 123.98

If a depositor puts Rs100 in a bank amount that earns 4 percent interest compounded annually, how much will be in the account after five years ? Read More »

Economics Mcqs, Risks And Diversification & Efficient Market Hypothesis

It is difficult for an actively managed investment fund to outperform an index fund because ?

It is difficult for an actively managed investment fund to outperform an index fund because ?

A. stock markets tend to be inefficient
B. all of these answers
C. index funds are able to buy undervalued stocks
D. actively managed funds trade more often and charge fees for their alleged expertise

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Economics Mcqs, Risks And Diversification & Efficient Market Hypothesis

Which of the following should cause the price of a share of stock to rise ?

Which of the following should cause the price of a of stock to rise ?

A. None of these answers
B. An increase in expected dividends
C. A reduction in aggregate risk
D. A reduction in the interest rate
E. All of these answers

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Economics Mcqs, Risks And Diversification & Efficient Market Hypothesis

If the efficient markets hypothesis is true, then ?

If the efficient markets hypothesis is true, then ?

A. s tend to be overvalued
B. the stock market is informationally efficient so prices should follow a random walk
C. All of these answers
D. fundamental analysis is a valuable tool for increasing one’s returns from investing in s

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Economics Mcqs, Risks And Diversification & Efficient Market Hypothesis

Compared to a portfolio composed entirely of shares a portfolio that is 50 percent government bonds and 50 percent shares will have a ?

Compared to a portfolio composed entirely of s a portfolio that is 50 percent government bonds and 50 percent s will have a ?

A. lower return and a lower level or risk
B. lower return and a higher level of risk
C. higher return and a lower level or risk
D. higher return and a higher level of risk

Compared to a portfolio composed entirely of shares a portfolio that is 50 percent government bonds and 50 percent shares will have a ? Read More »

Economics Mcqs, Risks And Diversification & Efficient Market Hypothesis

Which of the following does not help reduce the risk that people face ?

Which of the following does not help reduce the risk that people face ?

A. increasing the rate of return within their portfolio
B. diversifying their portfolio
C. All of these answers help reduce risk
D. buying insurance

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Economics Mcqs, Risks And Diversification & Efficient Market Hypothesis