Answer:
C. subtracting the competitive level producer surplus from the producer surplus associated with less output
Explanation:
A deadweight loss refers to a cost to society created as a result of market inefficiency. Market inefficiency occurs when supply and demand are out of equilibrium. It is also known as excess burden.
Deadweight loss is also created due to taxes as they prevent people from purchasing things that they would otherwise as the final price of the product increases.
The deadweight loss associated with output less than the competitive level can be determined by subtracting the competitive level producer surplus from the producer surplus associated with less output
Answer:
1.15
Explanation:
If investment is made in equal proportions, it means that;
weight in risk free ; wRF = 33.33% or 0.3333
Let the stocks be A and B
weight in stock A ; wA = 33.33% or 0.3333
weight in stock B; wB = 33.33% or 0.3333
Beta of A; bA = 1.85
Let the beta of the other stock be represented by "bB"
Beta of risk free; bRF = 0
Beta of portfolio = 1 since it is mentioned that "the total portfolio is equally as risky as the market "
The weight of portfolio is equal to the sum of the weighted average beta of the three assets. The formula is as follows;
wP = wAbA + wBbB + wRF bRF
1 = (0.3333 * 1.85) + (0.3333*bB) + (0.3333 *0)
1 = 0.6166 +0.3333bB + 0
1 - 0.6166 = 0.3333bB
0.3834 = 0.3333bB
Next, divide both sides by 0.3333 to solve for bB;
bB = 0.3834/0.3333
w=bB = 1.15
Therefore, the beta for the other stock would be 1.15
Answer:
a. FALSE
Both Employers and Employees do most of the paying not the Federal government which only steps in for subsidies to lower income households.
b. TRUE
The Government can indeed fine employers or individuals for not having or providing health insurance.
c. FALSE
They cannot deny him coverage based on his pre-existing medical condition as a result of the ACA and neither can they charge higher premiums.
d. TRUE
Funding the ACA will need the Government to raise more revenue and they plan to do so by imposing new taxes on items including medical devices and indoor tanning.
e. TRUE.
A person under the age of 26 is to be a dependent under this Act and this includes married people under the age of 26 as well as unmarried.
Answer:
The right solution is "4.55%".
Explanation:
Given that,
Expected return,
= 10.1%
Risk-free rate,
= 3.5%
Beta,
= 1.45
Now,
The market risk premium will be:
⇒ 
⇒ 
By putting the values, we get
⇒ 
⇒ 
⇒ 
(%)
