Answer:
1) Flitcom Corp (Beta = 0.60)
2) Tobotics Inc. (s.d. = 11%)
Explanation:
1. Suppose all stocks in Ariel's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio?
The indicator of the market risk is the Beta. It relates the variation of the price or value of the stock relative to the variation of the total stocks in the market.
The value of Beta indicates how risky is a stock relative to the risk of the market. A Beta =1 means it has the same systemic risk as the market. If Beta<1, the stock is less volatile than the market, and if Beta>1, it is more volatile than the market.
Then, the stock with less value of Beta will contribute the least risk to the portfolio.
This is the case of Flitcom Corp (Beta=0.60)
2. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk?
The stand-alone is reflected by the standard deviation. The less the standard deviation, the less risk of the stock (measured only the stock variability).
This is the case of Tobotics Inc. (s.d. = 11%)
Answer:
(I) Price elasticity = 1/6
(II) the $2.5 price gives the higher revenue: 1,250
Explanation:
(I) price elasticity
↑Q (500 - 300)/((500+ 300) / 2)
↑Q 200 / (800/2) = 200/400 = 1/2
↑P (3.5 - 2.5)/((3.5+2.5)/2)
↑P 1/(6/2) = 1/3
(II) total revenue
3.5 x 300 = 1,050
2.5 x 500 = 1,250
Total variable cost is -44000 ,0, 244000.
TR = P * Q
TC = FC + VC
Profit = TR - TC
Price Q TR FC VC
10 6000 6000 * 10 = 60000 44000 =10 * 6000 = 60000
16 8000 16 * 8000 = 128000 44000 =10.5 * 8000 = 84000
40 12000 40 * 12000 = 480000 44000 =16*12000 = 192000
Profit
-44000
0
244000.
The main goal of a perfect competitor to maximize profits is to calculate the optimum production level where marginal cost (MC) = market price (P). As shown in the graph above, the point of profit maximization is where the MC intersects the MR or P.
This is the output when the marginal revenue from the last sold unit is equal to the marginal cost to produce it.
In order to maximize profits, companies need to produce in a place where marginal revenue and marginal cost are equal. The company's marginal production cost is $ 20 per unit. If the company produces 4 units, its marginal revenue is $ 20. Therefore, the company needs to produce 4 production units.
Learn more about profit or loss here: brainly.com/question/13799721
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Answer:
Recourse debt.
Explanation:
Cancelled recourse debt are included as income and are taxable. Taxpayer get the benefit for using the money but does not have burden to repay the amount. These are mainly, prizes, awards on winning any contest etc. Debt which are forgiven or cancelled by lender are considered as Income and taxable. The law say that income from discharge of indebtness are included as income.
