If a Person Wants a Well-Diversified Portfolio, They Should

question 28

Multiple Choice

If a person wants a well-diversified portfolio, they should

• A) invest within no more than two or three industries.
• B) invest in only high expected return investments.
• C) invest globally.
• D) invest only in Canada.

Evaluate the role and impact of government interventions, such as taxes and standards, in correcting market inefficiencies.

Apply the principles of marginal analysis to determine optimal levels of production and consumption in the presence of externalities.

Understand the concept of monopoly power and its implications for market outcomes and social welfare.

Analyze the impact of pollution on economic decisions and the effectiveness of pollution fees and permits in achieving social optimality.

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Definitions:

Glaucoma

A group of eye conditions that damage the optic nerve, often associated with increased pressure in the eye.

Basic

A description for substances that have a pH greater than 7 and can accept protons or donate electrons.

Aniline

An aromatic amine consisting of a benzene ring attached to an NH2 group, used as a precursor for many industrial chemicals, including dyes and drugs.

Molecular Bromine

A diatomic molecule, Br2, consisting of two bromine atoms, widely used in synthesis and in various industrial applications.