BuboFlash - helps with learning

Edited, memorised or added to reading queue

Do you want BuboFlash to help you learning these things? Click here to log in or create user.

Flashcard 1453813009676

Tags

#cfa-level-1 #economics #reading-15-demand-and-supply-analysis-the-firm #section-3-analysis-of-revenue-costs-and-profit

Question

Profit maximization occurs when

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

Answer

is the greatest

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Parent (intermediate) annotation

Open it
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

Tags

#reading-7-discounted-cashflows-applications

Question

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

Answer

exactly 6%.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

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

Tags

#reading-8-statistical-concepts-and-market-returns

Question

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

Answer

modal interval

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Flashcard 1641085013260

Tags

#reading-8-statistical-concepts-and-market-returns

Question

The weighted mean ¯¯¯X_w , for a set of observations X₁, X₂, …, X_n with corresponding weights of w₁, w₂, …, w_n is computed as:

Answer

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

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Flashcard 1648564768012

Tags

#reading-8-statistical-concepts-and-market-returns

Question

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

Answer

harmonic mean

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

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.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

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)

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

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.

status	not read	reprioritisations
last reprioritisation on		suggested re-reading day
started reading on		finished reading on

Flashcard 1648670936332

Tags

#reading-9-probability-concepts

Question

Covariances are often presented in a square format called a [...]

Answer

covariance matrix.

status	not learned	measured difficulty	37% [default]	last interval [days]
repetition number in this series	0	memorised on		scheduled repetition
scheduled repetition interval		last repetition or drill

Edited, memorised or added to reading queue

on 03-Aug-2017 (Thu)

Parent (intermediate) annotation

Original toplevel document