Answer:
Option (b)=112 units of output was produced in 2013
Explanation:
Returns of scale refers to how much output changes given a proportional change in input, where the input changes by a constant factor.
This can be represented by the equation;
Input 2=Constant×Input 1
where;
Input 1=100 units of Labor+50 units of capital=100l+50c
Constant=k
Input 2=112 units of Labor+56 units of capital=112l+56c
Replacing;
112l+56c=k×(100l+50c)
Since k is a common factor which when multiplied by the input 1 labor and capital equals input 2 labor and capital, it can be calculated as;
k=(Input 2 labor units/input 1 labor units)=(Input 2 capital units)/Input 1 capital units)
k=(112l/100l)=(56c/50c)=1.12
To calculate the output for input 2;
Output 2=k×Output 1
where;
Output 1=the output produced by input 1=100 units
k=constant returns=1.12
Output 2=the output produced by input 2=x
Replacing;
x=100×1.12
x=112 units
Output 2=112 units
112 units of output was produced in 2013
Answer:
1%
Explanation:
Portfolio's alpha = expected return of the portfolio - required return of the portfolio
Alpha = 14% - (5% + (0.8 x 10%)) = 14% - (5% + 8%) = 1%
A portfolio's alpha is the excess return yielded by the portfolio compared to the market's expected return for a similar investment.
Answer:
Holistic
Explanation:
A holistic approach means thinking about the big picture. You need to understand the need and the enviroment in order to put it in perspective
Answer: 2.63
Explanation:
The Market to Book ratio is also referred to as the price to book ratio. It is a financial evaluation of the market value of a company relative to its book value. It should be noted that the market value is current stock price of every outstanding shares that the company has while the book value is the amount that the company will have left after its assets have been liquidated and all liabilities have been repaid.
The market-to-book ratio will be the market price per share divided by the book value. It should be noted that the book value per share is the net worth of the business divided by the number of outstanding shares. The book value will be:
= [(12500 ×1) + $21200]/12500
= ($12500 + $21200)/$12500
= $33700/12500
=$2.70
The market-to-book ratio will now be:
= $7.10/$2.70
=2.63
Answer:
The correct answer is FALSE.
- First it's not sound investment advice to put all his savings into an investment because as the narrative rightly points out, he may have other needs.
- Second, high growth stock are also
- high risk
- they only pay in the long term only if the company is successful because dividends are re-invested which is one of the reasons the companies grow quickly.
Although they are high risk, they also have great advantages such as:
- High growth rate: this means if all goes well David will enjoy a good return on his investment;
- It's also a way to protect his money from erosion by inflation
What can David do?
Subject to the advise of a professional investment professional
- David needs to take into consideration his immediate needs, set aside some funds to take care of that.
- Invest the balance into a mix of high growth rate stock which are high yielding but risky and low growth rate but secure investment like government bonds.
- Start a small business by the side or get a job in the interim as he continues with his new life.
Cheers!
