The ________ the Variance of Variability of Returns on a Portfolio,the

question 35

Multiple Choice

The ________ the variance of variability of returns on a portfolio,the more ________ the returns on the portfolio.

• A) Smaller, dangerous
• B) Smaller, diversified
• C) Larger, diversified
• D) Larger, uncertain

---

Definitions:

Rent Control

Government-imposed limits on the amount landlords can charge tenants for lease agreements, aimed at making housing more affordable.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing companies to adjust to market changes fully.

Price Floor

A government-imposed minimum price charged on goods and services, aimed at preventing prices from going too low.

Equilibrium Price

The price at which the quantity of a good demanded by consumers equals the quantity supplied by producers.