1. You invested $40,000 on Stock ABC and have earned 10% return last year.
In addition, you investment $20,000 on XXZ bond and have earned 5% return last year.
Assuming tax rate is zero. What is your weighted average return on your total investment last year?
You must round up your answer to 4 decimals.
2. Which of the following implies reduced unit costs as the range of products offered increases inputs in producing multiple products?
A) Diseconomies of scale.
B) Economies of Scale.
C) Economies of Scope.
D) Diseconomies of Scope
E) Constant returns to scale.