Let $\mathrm { Q } _ { \mathrm { D } } = - 5 \mathrm { P } + 54$

question 6

Multiple Choice

Let $\mathrm { Q } _ { \mathrm { D } } = - 5 \mathrm { P } + 54$ and $\mathrm { Q } _ { \mathrm { S } } = \mathrm { P } - 6$ .Here equilibrium price and quantity are

• A) \(Q = 4\) , \(P = 10\) .
• B) \(Q = 6\) , \(P = 10\) .
• C) \(\mathrm { P } = 6\) , \(Q = 0\) .
• D) \(Q = \frac { 54 } { 5 }\) , \(\mathrm { P } = 2\) .

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Definitions:

Risk-Return Dominance

A principle stating that an investment or portfolio is more desirable if it has a higher expected return for a given level of risk, or lower risk for a given level of expected return.

Market Equilibrium

Market Equilibrium is a condition in a market where the quantity demanded by consumers equals the quantity supplied by producers, resulting in stable prices.

Factor Risk

The risk associated with a specific factor or factors that can affect the performance of an investment portfolio, unrelated to broader market movements.

Risk Premium

The additional return expected by an investor for accepting a higher level of risk compared to a risk-free asset.