Which of the Following Statements Is Correct

question 33

Multiple Choice

Which of the following statements is correct?

• A)If the returns from two stocks are perfectly positively correlated and the two stocks have equal variance, an equally weighted portfolio of the two stocks will have a variance which is less than that of the individual stocks.
• B)If a stock has a negative beta, its expected return must be negative.
• C)According to the CAPM, stocks with higher standard deviations of returns will have higher expected returns.
• D)A portfolio with a large number of randomly selected stocks will have less market risk than a single stock with has a beta equal to 0.5.
• E)None of the above statements are correct.

Analyze the evolution of public and private sector unions and their legal rights.

Examine the role of legislation in balancing efficiency, equity, and voice in labor relations.

Understand the significance of landmark court cases in shaping labor law.

Recognize the legal frameworks surrounding collective bargaining and union activities.

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Definitions:

Shut Down

The process of ceasing operations, typically referring to temporarily or permanently closing a business or facility.

Marginal Costs

The extra costs incurred from increasing production output by a single unit, essential for determining optimal production levels.

Fixed Costs

Costs that do not vary with the volume of production or sales, such as rent, salaries, and insurance.

Demand

The desire and ability of consumers to purchase goods or services at a given price.