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The total cost in thousands of shillings of producing q units of a given product is given by the function 1000+ 2q^2-12q^2.a) total fixed cost
b).The output level that will minimize the marginal cost.
c).The marginal cost when the level of output is 5000 units
The firm’s cost of equity capital is 18%, the market value of firm’s equity is $8 million, the firm’s cost of debt is 9%, and the market value of debt is $4 million. The firm is considering a new investment with an expected rate of return of 17%. This project is 30% riskier than the firm’s average operations. The risk-free rate of return is 5%, the variance of the market return is 0.08. Is the project profitable?
Find the optimal commodity purchased by a consumer whose utility function and budget constraints are U=(q1)^2 (q2)^2 and 4q1 + 8q2= 96 respectively
A monopoly firm is faced with the following demand function p=13_0.5Q the marginal cost function for the firm is given by 3+4Q and the total fixed cost is four
Determine
(a) The profit maximizing output
(b) The level of supernormal output if any
(C) the output level at the break even point
Briefly explain two exceptions to the definition of an indifference curve
Unemployment and economic growth in Ethiopia
given that a firm has a utility function U=X^0.5Y^0.5, determine the demand function for commodities X and Y
Calculating Portfolio Betas You own a stock portfolio invested 25 percent in stock Q, 20 percent in stock R, 15 percent in stock S, and 40 percent in stock T. The betas for these four stocks are .75, 1.90, 1.38, and 1.16, respectively. What is the portfolio beta?
Jack holds a portfolio which is currently worth $100,000. With Beta =2.
Jack received 20,000, so he decided to sell one of the securities with Beta=1 for $5,000 and use 25,000 to buy a new security B=2.5.
Calculate Beta of the new portfolio.
Sam invested $3m in a portfolio made of 10 different securities with portfolio’s Beta of 3.5.
One month later, Sam sold security A which Beta =1.8 for $490,000 (purchased at a cost of 400,000) and used the profit to add security C with beta =2.4.
Compute the new portfolio Beta.
