Answer:
(D) Specialize in producing something that it is relatively good at producing.
Explanation:
When a country specialises in production of a good it is relatively good at producing, its citizens will not find it difficult to manufacture the good for local consumption and export.
If the country needs product it is not good at producing it imports it from other countries that have a competitive advantage in producing it.
This will produce maximum material comfort for its citizens.
Answer:
Portfolio beta = 1.1075
Explanation:
The portfolio beta is a function of the weighted average of the individual stocks betas' that form up the portfolio. To calculate the portfolio beta, we use the following formula,
Portfolio beta = wA * Beta of A + wB * Beta of B + ... + wN * Beta of N
Where,
- w represents the weight of each stock in portfolio
Portfolio beta = 0.30 * 0.95 + 0.25 * 1.12 + 0.25 * 1.13 + 0.20 * 1.30
Portfolio beta = 1.1075
Answer: This is a violation of position limits
Explanation:
When checking to see if there has been a violation of control limits, all the accounts managed by a single entity or all accounts under <em>common control</em> will be added up instead of being evaluated on an individual basis.
John manages 25 accounts out of which he bought calls for 10. He bought 30,000 for each of the 10 which would mean that he bought 300,000 call contracts.
This exceeds the 250,000 contract limit so is a violation of position limits.
Singh has developed a dependency for alcohol.
$17,000 amount of loss can John can deduct for the current year
Explanation:
Given,
John paid 2,000 worth of Red Corporation's $1244 share
Mark for $40,000
Mike for $12,000
John sold the remaining assets of Red Company for $3,000.
John has a typical risk of $17,000 ($3,000 – $20,000) for the current year.
The given statement is False.
John did not purchase the stock from Red Corporation; thus, he will not have a balance of $1244.
He does have a long-term capital risk of $17,000.
