Use the Information for the Question(s)below

question 19

Multiple Choice

Use the information for the question(s) below.
Suppose you have $10,000 in cash and you decide to borrow another $10,000 at a 6% interest rate to invest in the stock market.You invest the entire $20,000 in an exchange traded fund (ETF) with a 12% expected return and a 20% volatility.
-The volatility of your investment is closest to:

• A)40%.
• B)20%.
• C)30%.
• D)24%.

Recognize evidence of labor specialization in practical and theoretical contexts.

Examine the implications of division of labor and specialization on productivity and economic efficiency.

Understand the concept of the production possibilities frontier (PPF) and its assumptions.

Differentiate between attainable and unattainable points on the PPF.

---

Definitions:

Proper Order

A systematic arrangement or sequence that things follow which conforms to a set of rules or a standard procedure.

Accounts

Records within financial accounting that track financial transactions of a specific type, such as assets, liabilities, equity, expenses, and revenues.

Trial Balance Totals

The sum of all debit and credit balances in a trial balance, used to verify that the total debits equal total credits in double-entry bookkeeping.

Salary Expense

The total amount paid by a company to its employees as wages or salaries before any deductions.