Answer:
A portfolio consists of 40% in Security A and 60% in Security B. The covariance matrix for A is 144, 225; for B is 225, 81. The standard deviation for the portfolio is <u>12.7</u>
Option D is correct
Explanation:
Wa: 0.4
Wb: 0.6
a^2: 144
b^2: 81
Cov(a,b): 225
Portfolio Variance:
: (0.4*0.4*144) + (0.6*0.6*81) + (2*0.4*0.6*225)
: 160.2
Portfolio Standard Deviation: 12.7
Answer:
F. All of the above.
Explanation:
Service Quality of a Hotel is measured by a combination of all the suggested answers. The time takes the customer to receive the service and the way all the systems and process the customer take to get the service as well as the general appeal of the service are all important.
Answer:
a) a downward shift in the AFC curve
Explanation:
AFC = Average Fixed Cost, AVC = Average Variable Cost, MC = Marginal Cost
Average Fixed Cost is defined as the fixed cost of production divided by the quantity produced. Mathematically given as:
Average Fixed Cost = Fixed Cost ÷ Quantity
AVC = FC ÷ Q
Average Variable Cost is defined as the variable cost of production divided by the quantity produced. Mathematically given as:
AFC = VC ÷ Q
Marginal Cost is defined as the cost incurred for an additional unit to be produced. Mathematically given as:
MC = ΔC ÷ ΔQ
The firm discovered a more efficient technology implies that the cost of production is reduced. The result of this is that the fixed cost (FC) is reduced and consequently, the AFC is reduced as well. Hence, the AFC curve shifts downward. We therefore see that a reduction in fixed costs (due to the discovery of a more efficient technology) results in the AFC curve shifting downwards
<u>Hence, Option A (a downward shift in the AFC curve) is the correct answer </u>
Answer:
b. The refusal has an anti competitive effect on the market.
Explanation:
When a company that sells certain products fails to sell same to a retailer who deals in same products, such is said to have anti competitive effect on the market. The aim is to reduce competition in the market.
This type of refusal would always lead to price fixing, boycott.etc. When there is price fixing, it would lead to customers being unable to buy the product due to high price.
Products that are evenly distributed and not selective would increase competition in the market place such that customers would be able to purchase such product in any retail shop that sells the products.
