A risky asset will earn a rate of return close to that of ...

[crazycityslicker]

A risky asset will earn a rate of return close to that of riskless assets if its risk is
 
  A) nondiversifiable.
  B) diversifiable.
  C) nominal, as opposed to real.
  D) related to the rate of inflation.
  E) no greater than the risk of similar assets.

Question 2

An oligopolistic situation involving the possible creation of barriers to entry would probably best be modeled by a
 
  A) cooperative game.
  B) Prisoners' Dilemma game.
  C) Battle of the Sexes game.
  D) repeated game.
  E) sequential game.

[britb2u]

Answer to Question 1

B

Answer to Question 2

E