North American professional sports leagues employ the economic concept of scarcity in a variety of ways. Which of the following is an example of how leagues create scarcity? (Ch.5) O A. Expanding into as many metropolitan areas as possible O B. Producing a range of homogenous apparel goods O C. Limiting the amount of franchises that can compete in each league O D. Signing less players than each team needs to compete at the highest possible level Which of the following statements is NOT true regarding the deferred salary in professional sports? O A. Provide additional money to the organization to sign new players O B. A way to defer the tax O C. Less risky than regular payment D. The deferred money become worthless when the organization defaults. Which of the following is true regarding a stock with a beta of 0.5? A. The stock half as volatile as the market B. The stock is five times as volatile as the market OC. The stock is less risky that the market O D. All of the above O E. Both a and Which of the following statements is true regarding risk and investment returns? (Ch.3) O A. If an investment is risk-free, the interest paid on that investment will be zero O B. Time has no influence on risk OC. In an investment, the realized rate of return (what is actually earned) usually differs from the predicted rate of return (what we expect) O D. When comparing the coefficient of variation (the standard deviation or riskiness of the investment divided by the expected return) of two stand alone investments we should prefer a higher coefficient of variation all things being equal risk premium = time invested total risk. When lending how are the following related to one another: - A. lower; lower; higher O B. lower; higher; higher OC. higher; lower; higher OD. none of the above