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Arada [10]
3 years ago
9

ou own a portfolio that is 30 percent invested in Stock X, 20 percent in Stock Y, and 50 percent in Stock Z. The expected return

s on these three stocks are 11 percent, 17 percent, and 13 percent, respectively. What is the expected return on the portfolio
Business
1 answer:
mixer [17]3 years ago
3 0

Answer:

The expected return on the portfolio is:

= 13.2%

Explanation:

a) Data and Calculations:

Portfolio

Stock      Percentage  Expected    Weighted

                 Holding       Returns       Returns

Stock X        30%            11%                3.3%

Stock Y        20%            17%               3.4%

Stock Z        50%            13%               6.5%

Total          100%                                13.2%

b) The expected return on the portfolio is the addition of the weighted returns from each investment.  The weighted returns are obtained by multiplying the percentage holding of each stock with its expected returns.

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3 years ago
A producer of fixed proportion goods X and Y (Q = Qx = Qy) has marginal costs and revenues of MC = 10 Q, MRX = 150 - 6 QX, MRy =
sammy [17]

Answer:

a. Qx =9, Qy=9

Explanation:

As per the given data

Q = QX = QY

MRX = 150 - 6QX = 150 - 6Q

MRY = 30 - 4QY = 30 - 4Q

MC = 10Q

Now calculate the Marginal revenue as follow

MR = MRX + MRY

MR = 150 - 6Q + 30 - 4Q

MR = 150 + 30 - 6Q - 4Q

MR = 180 - 10Q

The Equilibrium of the producer will be

MR = MC

180 - 10Q = 10Q

180 = 10Q + 10Q

180 = 20Q

Q = 180 / 20

Q = 9

As we know

Q = Qx = QY

Hence, the value of Qx  and QY is 9

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3 years ago
​____ post ratings of products and services and contribute to and edit articles in wikis
Oksanka [162]
The answer is critics
7 0
3 years ago
Consider the market to the right. compared to the perfectly competitive outcome, what would be the change in surplus if instead
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If the market had one supplier that was a monopoly then there would be only one firm operating in the market, with no competition.

In a market, a monopolist tends to charge a price higher and produces fewer units than a competitive market structure. Because of such higher monopoly price, the area of consumer surplus tends to decrease.

The market power of a monopoly affects both consumer and producer surplus as a firm is able to earn positive economic profits, and as it is a monopoly, other firms are unable to enter their market and cannot lead to competition.

Hence, a firm is a monopoly if it can ignore other firms prices.

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2 years ago
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AURORKA [14]

Answer:

C. predatory pricing is not a profitable business strategy.

Explanation:

However, even though they are not a profitable business strategy, they can lead to a monopoly system. When a company enters predatory pricing, it is selling products for a price that no competitor can match, because they are usually cheaper than the cost to make it. If a company can sustain a predatory system for a while, it will be the only one left in the market. Being, in that way, the mono player, could raise the price to recoup its loss, even though this is a very dangerous business move.

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