Exhibit 7A -Refer to Exhibit 7A

question 1

Multiple Choice

Exhibit 7A.1
$$\mathrm { W } _ { 1 } = \left[ \mathrm { E } \left( \sigma _ { 2 } \right) ^ { 2 } - r _ { 1.2 } \mathrm { E } \left( \sigma _ { 1 } \right) \mathrm { E } \left( \sigma _ { 2 } \right) \right] \div \left[ \mathrm { E } \left( \sigma _ { 1 } \right) ^ { 2 } + \mathrm { E } \left( \sigma _ { 2 } \right) ^ { 2 } - 2 r _ { 1.2 } \mathrm { E } \left( \sigma _ { 1 } \right) \mathrm { E } \left( \sigma _ { 2 } \right) \right]$$
-Refer to Exhibit 7A.1.Show the minimum portfolio variance for a two stock portfolio when r_1.2 = 1.

• A) E(?₂) ¸ [E(?₁) - E(?₂)]
• B) E(?₂) ¸ [E(?₁) + E(?₂)]
• C) E(?₁) ¸ [E(?₁) - E(?₂)]
• D) E(?₁) ¸ [E(?₁) + E(?₂)]
• E) None of the above

Understand the components of the marketing mix and how they apply to different business scenarios.

Comprehend the evolution of marketing concepts and the introduction of frameworks such as the S.A.V.E. model.

Identify the role of promotion within the marketing mix.

Recognize how product features and benefits fit within the marketing mix.

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Definitions:

Sales

The total revenue earned from the sale of goods or services over a specific period of time.

Degree of Operating Leverage

The degree of operating leverage is a measure of how revenue growth translates into growth in operating income, indicating the sensitivity of operating income to changes in sales.

Net Operating Income

The profit derived from a company's core business operations, excluding expenses and revenues from non-operating activities.

Sales Volume

Sales volume refers to the quantity of goods or services sold within a specific period, typically used to gauge a company's performance.