Author Question: The indifference curves of two investors are plotted against a single budget line. Indifference ... (Read 310 times)

tuffie

  • Hero Member
  • *****
  • Posts: 534
The indifference curves of two investors are plotted against a single budget line. Indifference curve A is shown as tangent to the budget line at a point to the left of indifference curve B's tangency to the same line.
 
  A) Investors A and B will hold the same portfolio.
  B) Investors A and B will have different portfolios of the same standard deviation.
  C) Investors A and B will have different portfolios of the same rate of return.
  D) Investors A and B will have different portfolios but have the same level of risk aversion.
  E) Investor A will expect to earn a lower rate of return than investor B.

Question 2

The optimum level of pollution emissions
 
  A) is zero.
  B) occurs where the marginal external benefit is zero.
  C) occurs where no damage to the environment is being done.
  D) occurs where the marginal external benefit equals the marginal external cost.
  E) occurs where the marginal external cost equals the marginal cost of abatement.



Meganchabluk

  • Sr. Member
  • ****
  • Posts: 301
Answer to Question 1

E

Answer to Question 2

E



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

Medications that are definitely not safe to take when breastfeeding include radioactive drugs, antimetabolites, some cancer (chemotherapy) agents, bromocriptine, ergotamine, methotrexate, and cyclosporine.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

For a complete list of videos, visit our video library