Cap-and-trade is a trading system designed to achieve more efficient pollution control. It can be described as: Group of answer choices a program that regulates the base rate at which pollutants are emitted. a program that allows new firms to pay existing firms to reduce their emissions below a standard. a program that sets a standard for emission that no firm can exceed. a program that issues tradable permits in order to limit aggregate emissions. Next

Stocks a, b, and c are similar in some respects: each has an expected return of 10% and a standard deviation of 25%. stocks a and b have returns that are independent of one another; i.e., their correlation coefficient, r, equals zero. stocks a and c have returns that are negatively correlated with one another; i.e., r is less than 0. portfolio ab is a portfolio with half of its money invested in stock a and half in stock b. portfolio ac is a portfolio with half of its money invested in stock a and half invested in stock c. which of the following statements is correct? a. portfolio ab has a standard deviation that is greater than 25%.b. portfolio ac has an expected return that is less than 10%.c. portfolio ac has a standard deviation that is less than 25%.d. portfolio ab has a standard deviation that is equal to 25%.e. portfolio ac has an expected return that is greater than 25%.