True or False: Increasing the number of stocks in a portfolio reduces market risk. True False Consider two stock portfolios. Portfolio Y consists of four different stocks from firms in different industries. Portfolio X consists of 10 different stocks, also from firms in different industries. The return on Portfolio Y is likely to be volatile than that of Portfolio X. Suppose a stock analyst recommends buying stock in the following companies: Company Industry Toyonda Automotive Saalvo Automotive GMW Automotive Honsubishi Automotive Shexxon Oil and gas Mobron Oil and gas Airing Aircraft Boebus Aircraft Goohoo Technology Pherk Pharmaceutical Each of the following portfolios contains four of the stock picks. Which portfolio is the least diversified

10. problems and applications q10 a market is described by the following supply-and-demand curves: qsqs = = 2p2p qdqd = = 300â’p300â’p the equilibrium price is $ and the equilibrium quantity is . suppose the government imposes a price ceiling of $90. this price ceiling is , and the market price will be $ . the quantity supplied will be , and the quantity demanded will be . therefore, a price ceiling of $90 will result in . suppose the government imposes a price floor of $90. this price floor is , and the market price will be $ . the quantity supplied will be and the quantity demanded will be . therefore, a price floor of $90 will result in . instead of a price control, the government levies a tax on producers of $30. as a result, the new supply curve is: qsqs = = 2(pâ’30)2pâ’30 with this tax, the market price will be $ , the quantity supplied will be , and the quantity demanded will be . the passage of such tax will result in .