Q1. You've a portfolio of two risky stocks which turns out to have no diversification benefit. The reason you've no diversification is the returns: a. b. c. d. e. are too small. Move opposite of one another. Are too large to move offset. Absolutely with one another which are completely unrelated to one another.

Q2. Utilize the model of perfect competition Elucidated in this chapter to Elucidate, illustrate, or elaborate on the subsequent statements. Increasing competition from new firms entering the market is good because it means one is in a good business. One important difference between an entrepreneurs also a manager is which the former gets into a market before demand increases, while the later gets into the market after the shift.