# on 03-Aug-2017 (Thu)

#### Flashcard 1453813009676

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Profit maximization occurs when

• the difference between total revenue (TR) and total costs (TC) [...]

is the greatest

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#### Parent (intermediate) annotation

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Profit maximization occurs when the difference between total revenue (TR) and total costs (TC) is the greatest; marginal revenue (MR) equals marginal cost (MC); and the revenue value of the output from the last unit of input employed equals the cost of employing that

#### Original toplevel document

3.1.4. Output Optimization and Maximization of Profit
Profit maximization occurs when the difference between total revenue (TR) and total costs (TC) is the greatest; marginal revenue (MR) equals marginal cost (MC); and the revenue value of the output from the last unit of input employed equals the cost of employing that input unit (as later developed in Equation 12). All three approaches derive the same profit-maximizing output level. In the first approach, a firm starts by forecasting unit s

#### Flashcard 1626639568140

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A project with an IRR of 6% assumes that all cash flows can be reinvested to earn [...]
exactly 6%.

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Subject 1. NPV and IRR
y a capital investment. As such, it is an easy number to interpret and understand. However, calculation of the IRR assumes that all project cash flows can be reinvested to earn a rate of return exactly equal to the IRR itself. In other words, <span>a project with an IRR of 6% assumes that all cash flows can be reinvested to earn exactly 6%. If the cash flows are invested at a rate lower than 6%, the realized return will be less than the IRR. If the cash flows are invested at a rate higher than 6%, the realized return will

#### Flashcard 1641075838220

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When continuous data (less likely to have mode) is grouped into intervals, we often find an interval (or more) with the highest frequency: the [...]

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#### Flashcard 1641085013260

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The weighted mean ¯¯¯Xw , for a set of observations X1, X2, …, Xn with corresponding weights of w1, w2, …, wn is computed as:

$$\bar{X}_w = \displaystyle\sum_{i=1}^n W_iX_i$$

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#### Flashcard 1648564768012

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Which is less or equal, harmonic mean or geometric mean?
harmonic mean

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#### Annotation 1648577613068

 #reading-9-probability-concepts Modern portfolio theory makes frequent use of the idea that investment opportunities can be evaluated using expected return as a measure of reward and variance of return as a measure of risk.

#### Annotation 1648599895308

 #reading-9-probability-concepts Calculation of Portfolio Expected Return. Given a portfolio with n securities, the expected return on the portfolio is a weighted average of the expected returns on the component securities: E(Rp)=E(w1R1+w2R2+…+wnRn)=w1E(R1)+w2E(R2)+…+wnE(Rn)

#### Annotation 1648615361804

 #reading-9-probability-concepts the covariance between two random variables is the probability-weighted average of the cross-products of each random variable’s deviation from its own expected value.