Which Investment Has the Least Amount of Risk

question 16

Multiple Choice

Which investment has the least amount of risk?

• A) standard deviation = $800, expected return = $400
• B) standard deviation = $700, expected return = $ 3,000
• C) standard deviation = $1000, expected return = $8,000
• D) standard deviation = $1000, expected return = $7,000

Identify the economic effects of monopolies, including the impact on prices and output compared to competitive markets.

Analyze the role of government regulation in controlling monopolies and ensuring they earn only a normal return.

Recognize the different types of barriers to entry that sustain monopolies.

Understand the relationship between economies of scale and natural monopolies.

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Definitions:

Acheulean Tool Tradition

An archaeological industry of stone tool manufacture characterized by distinctive oval and pear-shaped hand-axes associated with early humans.

Hand Axe

A prehistoric stone tool, often bifacially flaked to a point or edge, used by early humans for chopping, cutting, and as a general utility tool.

Neandertals

An extinct species or subspecies of archaic humans who lived in Eurasia until about 40,000 years ago, known for their robust build and large brain capacity.

Genus

In the system of plant and animal classification, a group of like species.