The systematic risk principle states that the expected return on a risky asset depends only on the asset’s <u>market </u>risk.
<h3>What are
systematic risk principles?</h3>
According to the systemic risk concept, the expected return on an asset is solely determined by its systematic risk. As a result, regardless of how much overall risk an asset carries, just the systematic part is significant in estimating the expected return (including risk premium) on such asset.
Market risk is a kind of systematic risk that affects the entire market. Because it cannot be diversified and distributed, the investor is compensated for it.
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George’s company is reacting to the <u>Market economic system.</u>
Explanation:
- In a <u> Market Economy system </u>the organizations are run by the people.People determine how the economy runs,how supply are generated and how demands are met.
- <u>The Market Economy System </u> relies/depends upon the consumption choices of the customer.
- Supply and demand of the product has a great impact on this economy
It must sanitized. However it is a better practice to use a different cutting board.
Answer: Government Officials
Explanation: In a command economy, no individuals, business owners & tribal leaders, but the government decides the goods & services for production to be helpful for the country's economy. The government & its officials take a call on -
i. what goods to be produced,
ii. In how much quantity those goods should be produced
iii. at what amount, it will reach the consumers
All productions are controlled & planned by the government, hence it is also called as planned economy.
Answer:
The correct answer is the second option: The price level is constant in the long run.
Explanation:
To begin with, the concept of the <em>"aggregate supply"</em> refers to the total amount of goods and services that firms are willing and are able to offer at a certain price level given and at a determine period of time. Moreover, at the long-run the aggregate supply curve is not affected by many variables as it is in the short run and this is due to the fact in the long run the economy is said to be at full capacity and optimally and also because the changes in the aggregate demand are only affective in the short run to the economy's total output.