By diversifying, the risk of holding stock

a. can be reduced but not eliminated. on average over the past two centuries stocks paid a lower average real return than bonds.
b. can be eliminated. on average over the past two centuries stocks paid a higher average real return than bonds.
c. can be reduced but not eliminated. on average over the past two centuries stocks paid a higher average real return than bond econ

  Option C

Explanation: In simple words, diversification refers to the process in which the holder of a portfolio purchases and includes different types of securities with no or negative correlation between them. By doing so, the risk of the portfolio can be reduced  but cannot be eliminated as the systematic risk due to the market inefficiencies cannot be eliminated.

It is evident that over the past two years stocks paid higher returns than bond due to the fact that globalization has increased the market for the companies leading to hoover share which further  results in higher return for stock holders in comparison to bond holders who have a fixed return.

a. money supply  

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answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.