Answer:
Expected return = 9%
Explanation:
<em>A portfolio is a collection of assets/ investment. The expected return on the stock would be the weighted average of all the return of the possible return weighted according to their probability.</em>
Expected return on portfolio:
E(R) =( Wa*Ra) + (Wb*Rb) + (Wc*Rc)
R- possible return,W- probability
E(R) = (30%× 0.25) + (12%× 0.5) + (-18%× 0.25) = 9
%
Expected return = 9%
Note that the negative sign in the last possible return implies a loss.
Answer:
25 chairs per employee.
Explanation:
In this case labour productivity is the number of dining chairs per day over number of employees.
An average of 600 standard dining chairs were assembled per 6-day work week.
This means that, the number of dining chairs assembled per day is
The number if employees is 4.
Therefore the labour productivity of this operation is:
per employee.
Answer:
A
Explanation:
The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
To determine which country has a better technology in production, the opportunity cost has to be calculated. The country with the lower opportunity cost has the better technology
At point B for North Cantina:
The opportunity cost of producing one 4 units of capital good = 10/4 = 2.5 units of consumer goods
The opportunity cost of producing 10 units of consumer good = 4/10 = 0.4 units of capital goods
At point B for South Cantina
The opportunity cost of producing one 4 units of capital good = 8/4 = 2units of consumer goods
The opportunity cost of producing 8 units of consumer good = 4/8 = 0.5 units of capital goods
South Cantina has a lower opportunity cost in the production of capital goods while North Cantina has a lower opportunity cost in the production of consumer goods
Answer:
80 (mark)only answer this
"A cross-hedging strategy is most effective with currencies that are <u>highly positively correlated</u>; currency diversification is most effective with currencies that are <u>not highly correlated.</u>"
<u>Explanation:</u>
Cross hedging is a idea that is used to mange risk. This is done by investing in two securities. Those two securities are correlated and that too positively. Which means their prices goes in the identical direction. It helps in minimizing the risks associated.
So,A cross hedging strategy is most efficient when currencies are positively correlated,
Currency diversification is a strategy where more than one currency is used in investment. It leads to less exchange rate risk. This strategy is most effective with currencies that are not highly correlated. Which means increase in one currency causes no increase in other currency.
