All of the Following Are Held to Be Constant When

question 9

Multiple Choice

All of the following are held to be constant when the supply curve for a product is drawn, except the:

• A)price of the product.
• B)state of technology.
• C)number of producers.
• D)price of inputs used to make the product.

---

Definitions:

Market Risk Premium

The additional return expected by investors for accepting the higher risk associated with the equity market over a risk-free asset.

Risk-Free Rate

The risk-free rate is the theoretical rate of return of an investment with zero risk, often represented by the yield of a short-term government bond.

Beta

A measure of a stock's volatility in relation to the overall market, used in the Capital Asset Pricing Model to determine the expected return of an investment.

Risk Aversion

The reluctance of a person to accept a bargain with an uncertain payoff rather than another bargain with a more certain, but possibly lower, payoff.