Which of the Following Statements Is Correct

question 61

Multiple Choice

Which of the following statements is correct?

• A) A single stock has a lot of diversifiable risk.
• B) A single stock has more market risk than a diversified portfolio of stocks.
• C) Bonds and stocks have a high correlation because they are both financial assets.
• D) None of the statements are correct.

Understand the concepts of marginal revenue product (MRP) and marginal product of labor.

Analyze the relationship between technological improvements and labor demand.

Understand the impact of changes in input prices on the demand for substitute inputs.

Calculate the marginal product of labor using given data.

---

Definitions:

Seller's Assets

Properties or financial resources owned by a seller, which can include inventory, buildings, equipment, or intellectual property.

Liabilities

Liabilities represent the financial obligations a company owes to outside parties, such as debt and accounts payable.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, indicating the net value owned by the shareholders.

Loan

A sum of money that is borrowed and expected to be paid back with interest by the borrower to the lender.