Which of the Following Is True

question 94

Multiple Choice

Which of the following is true?
i.A price ceiling set above the equilibrium price has no effects.
ii.A price ceiling set below the equilibrium price creates a surplus.
iii.A price floor set above the equilibrium price has no effects.

• A) Only i
• B) Only ii
• C) Only iii
• D) i and ii
• E) ii and iii

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Definitions:

Standard Deviation

A statistical measure that represents the dispersion or variability of a dataset relative to its mean.

Diversified

A strategy that involves spreading investments across various financial instruments, industries, and other categories to reduce exposure to risk.

Portfolio

A range of investments held by an individual or institution, including stocks, bonds, commodities, and more, often diversified to spread risk.

Diversifiable Risk

The risk associated with individual investments that can be reduced or eliminated through diversification across various assets.