Which of the Following Is Correct

question 7

Multiple Choice

Which of the following is correct?

• A)Investors can reduce the risk in their portfolio by investing in international stocks since they tend to have low correlation with our own stock market.
• B)Combining both stocks and bonds will likely reduce risk in a portfolio because the two assets have low correlation.
• C)Your optimal portfolio is an efficient portfolio with your desired risk level.
• D)All of these statements are correct.

---

Definitions:

Total Tax Revenue

The total amount of money collected by the government from taxes, which can come from various sources like income taxes, sales taxes, and corporate taxes.

Shrimp Market

The global or local market involved in the trading and selling of shrimp, encompassing both wild-caught and farmed shrimp.

Excise Taxes

Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. They are often included in the price of the product.

Producer Surplus

This economic term represents the excess profit that producers make over the minimum amount they would be willing to accept for selling their goods, highlighting the benefit to sellers in a market.