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The average cost is known as unit cost. It is equal to total cost divided by the number of goods produced. If Average variable costs are increasing while average total costs are decreasing, then marginal cost must lie between average variable and average total costs.
- The Marginal cost of an item is simply known as the increase in cost that accompanies a unit increase in output.
The relationship that exist between Average total costs and Marginal cost is that:
- When there is a decrease in average cost, the marginal cost is then less than the average cost.
- When the average cost increases, the marginal cost will then be greater than the average cost.
- When the average cost remains unchanged (is at a minimum or maximum), the marginal cost is equals the average cost.
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Red or yellow cards is the answer
The longer the period of time the higher the interest rate
Answer:
Amount of Stock F to buy $17,420
Explanation:
The risk-free asset is one minus the weight of the other two assets. Therefore Mathematically, the expected return of the portfolio will be:
E[Rp] = 0.106 = 0.50(0.141) + wF(0.100) + (1 – 0.50 – wF) (0.0555)
0.106 = 0.50(0.141) + wF(0.100) + 0.0555 – 0.02775 – 0.0555wF= 0.1742
Hence, the weight of the risk-free asset is:
wRf= 1 – 0.50 – 0.1742= 0.3258
And the amount of Stock F to buy is:
Amount of stock F to buy = 0.1742($100,000) = $17,420