Andrew's Hobby Is Painting

question 52

Multiple Choice

Andrew's hobby is painting.During the current year,Andrew sold three of his paintings for a total of $2,200.His related expenses include $800 utilities,$1,200 supplies,and $400 in depreciation.Of these expenses incurred,how much can Andrew deduct in the current year?

• A)$0
• B)$2,000
• C)$2,200
• D)$2,400

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Definitions:

Mean-Variance Efficient Portfolio

A portfolio constructed to have the highest possible return for a given level of risk, or equivalently, the lowest risk for a given level of expected return, according to Harry Markowitz's theory.

Firm-Specific Variances

Variability in a firm's stock price or returns that is attributable to factors unique to that firm, as opposed to general market factors.

Macroeconomic Factor

A wide-scale economic condition or variable that influences a broad economy and consequently affects individual businesses and financial markets.

Evolution of Beta

The evolution of beta refers to changes in the beta coefficient of an asset or portfolio over time, indicating variations in its volatility in relation to the broader market.