The suitable portfolio for the young investor is a.) portfolio of with a high percentage of stocks. Stocks are a person's share in a company, giving them profits or losses based on a company's performance. Stocks are highly risky due to the unpredictable performance in the stock market, prices can rise or drop fast. However, the returns of the stocks are higher compared to other financial instruments.
Answer:
E To prevent dumping
Explanation:
There are several arguments that are given to support trade barriers; one of which is to prevent dumping. A country would place embargo on imports with respect to some of the goods that are produced in her country. This is to enable and encourage local production of such goods. Where a country permits importation of goods that are produced locally, such action could being down the efforts of local production ; hence local industries might not thrive in terms of production.
Also, placing embargo on the importation of goods that are produced locally in a country would take away the possibility of making the country for dumping ground in terms of goods that are not up to standard, produced in a foreign country and same would have been imported.
Answer:
C. the greater is the marginal productivity of labor relative to that of capital
Explanation:
An isoquant is a curve that shows all the combinations of inputs that yield the same level of output.
When adding one factor holding the other factor constant inevitably, leads to lower output levels, the isoquant must become steeper, as more capital is added instead of labour, and flatter when labour is added instead of capital. Returns to capital even decline.
Answer: b. $30; $20; $0
Explanation:
<em>Admission prices to Dollywood are $50 for a one-day ticket, $80 for a two-day ticket, and $100 for an annual pass. Based on these prices, the marginal cost of visiting Dollywood the second day is </em><em><u>$30</u></em><em>, the third day is </em><em><u>$20</u></em><em>, and the fourth day is </em><em><u>$0.</u></em>
The marginal cost is the extra cost per day of going to Dollywood.
Second day
Marginal cost = Second day price - First day
= 80 - 50
= $30
Third day
Marginal cost = Third day price - Second day
= 100 - 80
= $20
Fourth Day
Marginal cost = Fourth day price - third day
= 100 - 100
= $0
Answer: C. narrow-based calls
Explanation:
Narrow based calls would include calls from one industry. The mutual fund is an "High technology" firm which means that it is a narrow based fund for instance as it is interested only in one industry being the High Tech industry.
The manager should invest in Narrow based calls that focus on the sector if he anticipates that the market will remain flat for the sector. Narrow based Calls are more volatile because they are specific and with the volatility comes higher premiums to be charged.
Should he wish to make income against the portfolio, he should sell these knowing that the options will not be called as the market will remain flat.
