You Have a Portfolio Which Is Comprised of 48 Percent

question 23

Multiple Choice

You have a portfolio which is comprised of 48 percent of stock A and 52 percent of stock B. What is the standard deviation of this portfolio?

• A) 1.98 percent
• B) 2.06 percent
• C) 2.13 percent
• D) 2.27 percent
• E) 2.30 percent

Interpret the impact of good-faith purchase and void, voidable, and good titles in transactions involving stolen or accidentally sold goods.

Examine the significance of shipping terms like FAS (Free Alongside Ship) and their implications for risk and cost allocation between buyers and sellers.

Recognize the legal effects of accidental sales and the rights of good-faith purchasers for value.

Understand insurable interest in goods-in-bailment contracts and how it is created.

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Definitions:

Marginal Revenue

The revenue enhancement a company experiences by selling another unit of a product or service.

Total Revenue

The total amount of money received by a firm from sales of its products or services, calculated as the quantity sold times the price per unit.

MC < MR

A condition in economic theory where marginal cost is less than marginal revenue, suggesting that increasing production would be profitable.

Profit Maximized

The point at which a firm achieves the highest possible profit margin, where marginal revenue equals marginal cost.