What is the condition for finding the optimal consumption bundle within a budget?
The optimal consumption bundle is given by the condition MUx/MUy=Px/Py and then this relation is substituted in the budget constraint equation X*Px + Y*Py= B MUx and MUy are marginal utilities of x and y respectively. Px and Py are the prices and B is the budget.
What is the significance of "beta" of a stock
Beta gives the degree of correlation between the market and stock. For example if beta of stock is 1.5 then if the market goes up by 10%, the stock goes up by 10*1.5=15%
What is the basic accounting equation which is used to verify the balance sheet?
Total Assets= Total liabilities + Stockholder's equity