Answer:
is limited by the returns on the individual securities within the portfolio
Explanation:
Portfolio is simply defined as a list of securities showing how much is (or will be) invested in each of them.
The expected return on a portfolio is calculated as the weighted average of the expected returns on the securities that the portfolio involves. The weight of each security is the a Portion or a fraction of wealth invested in that security. Expected return on a portfolio of N securities is: rp= sum (Xr).
Expected Return is usually based on anticipated income and anticipated capital appreciation.
Answer:
The correct answer is economics of scale.
Explanation:
Economies of scale can be defined as the cost advantage experienced by the firms when they increase their output level. As the cost of production gets spread over a large quantity of output the average cost declines.
These costs can be both variables as well as fixed. Economies of scale can be both internal as well as external.
Size of business affects the economies of scale, larger the firm the more will be savings on cost.
Answer:
D. a 10 percent decrease in the average price of a lift ticket.
Explanation:
When Price elasticity is greater than 1, that suggests that the demand for that particular good or service is highly responsive to price or is price-sensitive . Furthermore, If price elasticity is greater than 1 then an increase in price will cause revenue to decrease.
Applying the above-stated principle to the given scenario, it has been stated that 'The estimated price elasticity of demand is 1.5.' implying that the demand for downhill ski is highly sensitive and responsive to changes in price.
Therefore, the only logical economic strategy to improve revenues will be to decrease price so that revenue can increase.
Answer:
A. True
Explanation:
For her it is a specialty good because it not sold everywhere, therefore she makes the extra effort.
