The law of diminishing marginal returns holds for a situation in which some inputs are variable and some inputs are fixed.
<h3>What is the law of
diminishing marginal returns?</h3>
The law of diminishing marginal returns states that after some optimal level of capacity is reached in a production process, an additional factor of production would result in a lessening of output (quantity of production).
In this context, we can infer and logically deduce that the law of diminishing marginal returns would only hold for an economic situation in which some inputs are variable and some inputs are fixed.
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The answer: Kelly owns a massage studio and is offering free 15-minute massages to the participants of a popular 5K race event. This is an example of advertising
The expected return of your portfolio is 7.41%.
<h3>Portfolio expected return</h3>
Using this formula
Portfolio expected return=(Risky Asset weight × Risky expected return) + (Risk free Asset weight × Risk free expected return)
Let plug in the formula
Portfolio expected return=(63%×10%)+(37%×3%)
Portfolio expected return=6.3%+1.11%
Portfolio expected return=7.41%
Inconclusion the expected return of your portfolio is 7.41%.
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Maybe it depends on when their interviews ends
