How is covariance used in portfolio theory?

June 30, 2024 No Comments

A: Covariance is used in portfolio theory to determine what assets to include in the portfolio. Covariance is a statistical measure of the directional relationship between two asset prices. Portfolio theory uses this statistical measurement to reduce the overall risk for a portfolio. A positive

How is covariance used in portfolio theory?

July 7, 2024 No Comments

How is covariance used in portfolio theory?

July 7, 2024 No Comments

How is marginal analysis used in making a managerial decision?

June 30, 2024 No Comments

A: Marginal analysis plays a crucial role in managerial economics, the study and application of economic concepts, to managerial decisions. The idea is to predict and measure the impact of per unit changes on an organization’s goals, ultimately identifying the optimal resource allocation given the

How is marginal analysis used in making a managerial decision?

July 7, 2024 No Comments

How is marginal analysis used in making a managerial decision?

July 7, 2024 No Comments

How is marginal revenue related to the marginal cost of production?

June 30, 2024 No Comments

A: The marginal cost of production and marginal revenue are economic measures used to determine the amount of output and the price per unit of a product that will maximize profits. A rational company always seeks to maximize its profit, and the relationship between marginal revenue

How is marginal revenue related to the marginal cost of production?

July 7, 2024 No Comments

How is marginal revenue related to the marginal cost of production?

July 7, 2024 No Comments

How is productivity calculated?

June 30, 2024 No Comments

A: Productivity measures the efficiency of a company’s production process. It is calculated by dividing the outputs produced by a company by the inputs used in its production process. Common inputs are labor hours, capital and natural resources, while outputs are generally measured in sales

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