Exhibit 73
Use the Information Below for the Following Problem(S)

question 72

Multiple Choice

Exhibit 7.3
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c } A sset (A) & \text { A sset (B) } \\\hline \left( R _ { A } \right) = 9 \% & E \left( R _ { B } \right) = 11 \% \\\left( \sigma _ { A } \right) = 4 \% & \left( \sigma _ { B } \right) = 6 \% \\W _ { A } = 0 .4 & W _ { B } = 0 .6 \\C O V _ { A , B } = 0 .0011\end{array}$$

-Refer to Exhibit 7.3.What is the expected return of a portfolio of two risky assets if the expected return E(R?) ,standard deviation (s?) ,covariance (COV?,?) ,and asset weight (W?) are as shown above?

Comprehend the role of tax and subsidy interventions in competitive markets and their outcomes.

Realize the social and economic implications of sales and excise taxes, including their regressive nature.

Understand how the tax-transfer system affects income distribution.

Gain insights into international comparisons of tax progressivity.

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Definitions:

Support Department Cost Allocation

The process of distributing indirect costs from support departments, such as Human Resources or IT, to operational departments or product lines.

Dual Cost Allocation

A method of cost allocation that involves assigning costs to two or more objects without arbitrarily dividing them.

Long-Run Average Usage

The average amount of a resource used over a prolonged period, reflecting consistent consumption patterns.

Dual Cost Allocation

An accounting method that assigns costs to two or more entities or projects, based on a predetermined formula or basis of apportionment.