true or false: the following is idiosyncratic risk: the risk that the economy slows, decreasing demand for firm X;s products
true or false: the following is idiosyncratic risk: the risk that the economy slows, decreasing demand for firm X;s products
true or false: the following is idiosyncratic risk: the risk that the Fed will increase interest rates, thus decreasing demand for real estate company X's products.
true or false: the following is idiosyncratic risk: the risk that your firm X's employees will be hired away by competitors.
identify each of the following risks as most likely to be systematic risk or diversifiable risk:a. The risk that your main production plant is shut down due to a tornado. b. The risk that the economy slows, decreasing demand for your firm's products.c. The risk that your best employees will be hired away.d. The risk that the new product you expect your R&D division to produce will not materialize.
true or false: the following is idiosyncratic risk: the risk that the new product firm X's manager expects his R&D division to produce will not materialize.
18. Identify each of the following risks as either systematic risk or diversifiable risk: a. The risk that the CEO of your firm is killed in a plane accident b. The risk that the economy slows, decreasing demand for your firm's products c. The risk that your best employees will be hired away d. The risk that the new product you expect your R&D division to produce will not materialize
for each of the following risk, indicate whether the risk is systematic risk or idiosyncratic risk for a firm: a. risk of the ceos death b. risk of a global pandemic c. risk of an earthquake in the city of a firms head quarters d. risk of a nuclear war starting between any two nations in the world e. risk of oil becoming free of cost
True or False: Demand-pull inflation exists when an economy experiences inflation and high unemployment simultaneously. True False Adjust the following graph to show demand-pull inflation. Aggregate Demand Aggregate Supply Aggregate Supply Aggregate Demand REAL GDP Demand-pull inflation results in ▼ price level, real GDP and ▼ employment. True or False: Demand-pull inflation exists when an economy experiences inflation and high unemployment simultaneously. True False Adjust the following graph to show demand-pull inflation. Aggregate Demand Aggregate Supply Aggregate Supply Aggregate Demand...
True or false? Explain. It is possible to have decreasing marginal products for all inputs, and yet have increasing returns to scale
Which of the following risks of a stock are likely to be firm-specific, diversifiable risks, and which are likely to be systematic risks? Which risks will affect the risk premium that investors will demand? A. The risk that the founder and CEO retires B. The risk that oil prices rise, increasing production costs C. The risk that a product design is faulty and the product must be recalled D. The risk that the economy slows, reducing demand for the firm's...
True or False: Assume your firm produces a good which has high sales when the economy is expanding and low sales during a recession. Your risk will be higher if you invest in another product which is countercyclical.