Answer: C. optimal mix of the risk-free asset and risky asset
Explanation:
Risk aversion simply has to do with how people curtail risk and this is done through the preference for the outcomes that have low uncertainty than those that have high uncertainty.
An investor's degree of risk aversion will determine his or her optimal mix of the risk-free asset and risky asset even if they've access to the same risk-free asset and also the same investment opportunity set of risky assets.
Valuation of a swap during its life will least likely involve in the application of the principle of no arbitrage.
<h3>What is Swap?</h3>
Swap involves two individual that exchanging properties or money. This individual use different tools for the exchange as desired by them.
Arbitrage allows for sale of goods or property at the highest asking price and valuation will most like involve in it.
Therefore, valuation of a swap during its life will least likely involve in the application of the principle of no arbitrage
Learn more on swap below,
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Most likely a Command economy.
Answer:
Option (D) is correct.
Explanation:
We all know that a country imposes tariffs on the imports of a commodity to restrict imports from other country.
Specific tariff is a type of tariff that will be imposed on the every unit of a commodity that will be imported in a country. It is a amount of money that a person have to pay for every unit he or she imports.
It is mostly levied on the products like Fertilizers, rice, wheat, cloth, sugar, cement, etc.
Price control causes shortages and surpluses depending on whether it is the maximum or minimum price control. if it is maximum, there will be surpluses and if it is minimum, there will be shortages due to how much people can afford.
