question archive 1) The equilibrium risk-return curve for a risk-averse investor is A
1) The equilibrium risk-return curve for a risk-averse investor is A
Subject:EconomicsPrice:2.86 Bought7
1) The equilibrium risk-return curve for a risk-averse investor is
A.negatively sloped.
B.horizontal.
C.vertical.
2.The implicit rent of a house is
A.always zero for its owner.
B.the property tax and insurance costs for the house.
C.the interest rate on the mortgage loan on the house plus the amount of depreciation on the house
3.Which of the following is a common way for shareholders to prevent moral hazard of managers?
A.Increase the number of managers.
B.Limit the amount of information that managers can receive.
C.Share profits with managers.
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Answer:
1: The correct option is:
A.negatively sloped.
2: The correct option is:
C.the interest rate on the mortgage loan on the house plus the amount of depreciation on the house.
The Implicit rent of the house is that the interest rate on mortgage of the house plus the amount of depreciation of the house in which it has been foregone.
3:The correct option is:
C.Share profits with managers.
To keep a healthy relationship between the shareholders and managers there must an equal distribution of profits so that both the sides remain satisfactory.
