Answer:
(C) A government deciding which products to tax
Explanation:
Microeconomics is the subdivision of economics that studies the economic decisions of individuals, households, and firms. It is concerned with around how firms and households allocate scarce resources to meet different needs. It analyses how limited resources are distributed to many alternatives.
Microeconomics deals with individual choices, the factors that influence those choices, and how those decisions influence supply and demand in individual markets. Tax decisions affect the entire economy and not individual markets. Government decisions on taxation are concerns of Macroeconomics.
Answer: The correct answer is LONG; LONG
Explanation: A long position means the holder of the position owns the stock. A long position in a financial insteument means the holder of the position owns a positive amount of the instrument and has the expectation of an increase in value.
A short position refers to when the seller of the financial instrument does not own it.
Answer:
Elastic
Explanation:
Description of a curve elastic.: The curve believed by the longitudinal axis of an initially normal elastic strip or bar bent to any structure of elements within its elastic limits.
- Elasticity relates to the level of sales or market sensitivity in response to price changes.
- If a curve becomes more elastic than small price shifts can cause large volume changes consumption.
- At the poles, horizontal will be a beautifully elastic curve, while vertical will be a completely inelastic curve.
Answer:
B) 844
Explanation:
The HHI is a formula to find the market concentration of the firms in a particular market. In order to find the HHI we square the shares of each firm in the market and sum them up So the formula becomes
(S1)^2 + (S2)^2..............................(SN)^2
In this question we have 8 firms with 9% share and 4 firms with 7% share so we will put these market shares in the formula
8*(9^2)+4*(7^2)=844
Question Completion with Options:
a. A lack of diversification in fund A as compared to fund D.
b. Different benchmarks used to evaluate each fund’s performance.
c. A difference in risk premiums.
Answer:
The difference in rankings for Funds A and D is most likely due to:
a. A lack of diversification in fund A as compared to fund D.
Explanation:
a) Data and Calculations:
Fund Treynor Measure Rank Sharpe Ratio Rank
A 1 4
B 2 3
C 3 2
D 4 1
b) The Sharpe ratio and the Treynor measure are two financial performance ratios that measure the risk-adjusted rate of return of an investment. Specifically, the Sharpe ratio helps investors to understand an investment's return profile when compared to its risk profile. On the other hand, the Treynor ratio measures the excess return generated for portfolio risk per unit.
In conclusion, the Sharpe ratio appears to be a better measure with a portfolio that is not properly diversified, while the Treynor ratio works better with a well-diversified portfolio.