Economics Answers

Suppose that it is determined that a $100 million portfolio could potentially lose $20 million once every 20 trading days What is the Var at 95% and 99% Confidence intervals?

Consider a portfolio of equities worth $1,000,000,000 with an expected daily return of 4% and a daily standard deviation of returns of 0.10%. Assume that all returns are normally distributed. What is the daily VaR on this portfolio at a tolerance threshold of 95%? What is the value at risk over a 27-day period?

A competitive firm’s cost function is

How you feel QuickBooks makes keeping up with your payables and making purchases.
Compare to how you learned about payables in Principles of Financial Accounting. Do you think QuickBooks makes the process easier or harder? How do you like the aspect of making reports to show you different aspects of your payables?

If an economy were operating at a point inside its production possibilities frontier or boundary, it
would be

1. Ajax is a competitive firm operating under the following conditions: Price of output is $5, the profit-maximizing level of output is 20,000 units of output, and the total cost (full economic cost) of producing 20,000 units is $120,000. The firm’s only fixed factor of production is a $300,000 stock of capital (a building). If the interest rate available on comparable risks is 10 percent, should this firm shut down immediately in the short run? Explain your answer

Following is information on the production levels of three different firms. Firm A is currently
producing at a quantity where it is experiencing increasing returns. Firm B is currently
producing at a quantity where it is experiencing diminishing returns. Firm C is currently
producing at a quantity where it is experiencing negative returns.
a. If each of the firms cut back on its labor force, what will happen to its marginal
product of labor? And why?
b. If each of the firms adds to its labor force, what will happen to its marginal product of
labor? And why?

Assume that you are in the business of building houses in United Kingdom. You have analyzed
the market carefully, and you know that at a price of £120,000, you will sell 800 houses per
year. In addition, you know that at any price above £120,000, no one will buy your houses
because the government provides equal-quality houses to anyone who wants one at £120,000.
You also know that for every £20,000 you lower your price, you will be able to sell an additional
200 units. For example, at a price of £100,000, you can sell 1,000 houses; at a price of £80,000,
you can sell 1,200 houses; and so on.
a. Sketch the demand curve that your firm faces.
b. Sketch the effective marginal revenue curve that your firm faces.
c. If the marginal cost of building a house is £100,000, how many will you build and what
price will you charge? What if MC = £85,000?

Tariffs are an integral part of international trade policies and are often employed if/when deemed necessary.

Make use of an appropriate diagramme to present the effects of the introduction of tariffs on international

trade, with a special focus on how such tariffs would affect the producers, consumers, government and

other relevant stakeholders (if any

The following material matters are under discussion:
a. After the balance sheet date one of the company ’s factories was seriously damaged by fire. Insurance will only cover part of the loss suffered. The company’s going concern status is not affected.
b. One of the company’s buildings was revalued during the year. The directors are uncertain as to how the revaluation surplus should be included in the financial statements.
c. The draft financial statements for the entity for the year ended 30 June 2015 have been prepared. A final review of the draft reveals an overvaluation of the closing inventory of GHS 200,000 at 30 June 2014. Further investigation shows that there was an overvaluation at 30 June 2013 of GHS 120,000
Explain how each of these matters should be dealt with, stating in each case the relevant accounting standard.

Compared to conventional banking, Islamic banking has been growing rapidly around the world for the past two decades, although few scholars have some reservations on it.

What do you think could be the reasons for the rise of Islamic banking? Explain your answer with authoritative arguments.