Marginal analysis is to examine the added benefits versus the added cost of an activity. Consumers use marginal analysis unknowingly for their decisions everyday. While producers use marginal analysis as a tool for making a decision that will help them maximize their financial gain.
Answer:
Explanation:
Expected return of the portfolio is weighted average of the return of the components.
E(R) = w1 * R1 + w2 * R2
E(R) = 65% * 18% + 35% * 6%
E(R) = 11.70% + 2.10%
Expected Return, E(R) = 13.80%
Standard deviation of portfolio is mathematically represented as:
where
w1 = the proportion of the portfolio invested in Asset 1
w2 = the proportion of the portfolio invested in Asset 2
σ1 = Asset 1 standard deviation of return
σ2 = Asset 2 standard deviation of return
For risk free money market fund, standard deviation = 0 and its correlation with risky portfolio = 0
Standard deviation = 19.50%
Answer: B. I and IV
Explanation:
An appraiser bond is simply an insurance form that is bought by appraisers which indicates total compliance with the regulations and the laws in their field.
Bond appraisals are used in the municipal secondary market because the market is thin and trades are not reported to a consolidated tape.
Answer:
A) True
Explanation:
Organizing a partnership has several advantages; it is much faster, simpler and easy, start up costs are very low, etc.
But it has one huge disadvantage over a corporation, the partners are completely liable for the partnership's debts and obligations. That means that if the partnership goes bankrupt, the partners must pay all the debts and obligations. While a corporation's stockholders are only liable for the amount they invested in stock, i.e. you buy $10,000 in stock, then all you can lose is $10,000.
Also a corporations stocks are easily traded while a it is very complicated to transfer partnerships' rights.
