Author Question: The Lerner index measures A) a firm's potential monopoly power. B) the amount of monopoly power ... (Read 57 times)

craiczarry · **on:** Jul 1, 2018

The Lerner index measures

A) a firm's potential monopoly power.
B) the amount of monopoly power a firm chooses to exercises when maximizing profits.
C) a firm's potential profitability.
D) an industry's potential market power.

Question 2

If an asset's beta is high, its

A) diversifiable risk and expected return are high.
B) nondiversifiable risk and expected return are high.
C) diversifiable risk is high; its expected return is low.
D) nondiversifiable risk is high; its expected return is low.
E) total risk is high; its return could be any amount.