Answer:
Should purchase or consume more Alpha than Beta.
Explanation:
Marginal utility per dollar spent can be calculated as,
Alpha = 30/5 = 6/$ spent
Beta = 40/10 = 4/$ spent
Therefore maximizing utility in a given budget constraint would be achieved by buying or consuming more of Alpha.
Answer:
The portfolio SD is A. 20.65%
Explanation:
The standard deviation tells the total risk (both systematic and unsystematic) associated with a stock or a portfolio. The portfolio risk or the standard deviation of portfolio can be calculated using the following formula as attached in the picture below.
Using this formula, the standard deviation of the portfolio is:
SDp = √(0.3)² * (0.2)² + (0.7)² * (0.25)² + 2 * (0.3)*(0.7) * 0.4 * (0.2)*(0.25)
Portfolio SD = 0.20645 or 20.645% rounded off to 20.65%
Answer:
limited resources to satisfy virtually unlimited wants.
Explanation:
The economic issue is basically that of determining whether to allow the most use of finite capital to meet limitless human needs.
Person has limitless wishes, which are seldom fulfilled, in economics studies involve how to offer greater pleasure with limited resources or how to allow effective use of limited resources.
"<span>advent of globalization" The advent of globalization has sparked a trend of entrepreneurs.</span>
Answer:
Book Value at end of year 6 = $100,000
Explanation:
An Asset is depreciated to salvage value therefore when depreciation is complete the book value equals salvage value or zero.
Salvage value is an estimated value of what the company expects to earn after using the asset maybe when selling off the asset.
