Answer:
SO expected return on Mkt Portfolio Rm = 10.75%
Explanation:
market degree of risk aversion A = 3
Var = 0.0225 = SD^2
Rf = 4%
What is expected return on Mkt Portfolio ie Rm??
According to CAPM, Rm-Rf = A*SD^2
where SD is Std Dev (Recall SD^2 = Variance)
A is market degree of risk aversion
So we have Rm-4% = 3*0.0225
ie Rm = 4% + 3*0.0225 = 10.75%
SO expected return on Mkt Portfolio Rm = 10.75%
Answer:
Charge a higher price and produce less output
Explanation:
A monopolistic markets imeans that there is the absence of other suppliers of the same product or service, making them the sole market of the product or service. This can make them charge a premium to their customers. Consumers have no alternatives of options and are forced to pay the price for the goods dictated by the monopolist. ITherd is a tendency for the monopolist to make prices high high prices, it may not necessarily be a monopolistic behavior.
A monopolistic market can restricts output to raise the price leading to less production, which reduces total real social income.
Answer:
The correct answer is: The consumer considers the prices of the products.
Explanation:
When taking the decision regarding how to maximize utility the consumers will consider the prices of the products. The consumer will be able to maximize utility at the point where the marginal utility of money spent on each commodity is equal.
We can represent it as,
Answer:
Demographic Segmentation
Explanation:
Demographic segmentation is a technique used to divide a large group of potential custoners in to groups depending on their gender, age, location, etnia, income, etc.
In this case AA is segmentating based on gender or location (zip Code)
Demographic segmentation is based on demographic information of the customer and it helps to target the message in order to reach the relevant audience.
