149 suppose that thom experiences a greater loss in

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____ 149. Suppose that Thom experiences a greater loss in utility if he loses $50 than he would gain in utility if he wins $50. This implies that Thom’s a. marginal utility diminishes as wealth rises, so he must be risk averse. b. marginal utility diminishes as wealth rises, but we can’t tell from this if he is risk averse. c. marginal utility increases as wealth rises, so he must be risk averse. d. marginal utility increases as wealth rises, but we can’t tell from this if he is risk averse.
____ 150. When you rent a car, you might treat it with less care than you would if it were your own. This is an example of
____ 151. Which of the following is not correct?
____ 152. An increase in the number of corporations in a portfolio from 1 to 10 reduces
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b. market risk by less than an increase from 110 to 120. c. firm-specific risk by more than an increase from 110 to 120. d. firm-specific risk by less than an increase from 110 to 120. ____ 153. Phillip is a mortgage broker, who is paid by commission. When interest rates decline, he does a lot of business and earns a lot of money, as more people buy houses or refinance their mortgages. But when interest rates rise, business falls substantially. To diversify, Phillip should choose investments that a. provide a higher return than the market average. b. provide a lower return than the market average. c. pay higher returns when interest rates rise and lower returns when interest rates fall. d. pay lower returns when interest rates rise and higher returns when interest rates fall.
____ 154. Manufacturers of Weightbegone are concerned that genetic advances in weight control might reduce the demand for their diet snacks. This is an example of

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