Break-even and Shut-down Point of Production
Break-even Point of Production The break-even point can be defined as the production and sales levels of a given product at which the revenue generated from the sales is perfectly equal to the production cost. At this point, the company…
Ethics and Trust in the Investment Profession
Ethics Defined Many professions define a code of ethics aimed at outlining cultural values within that profession. For the investment industry, ethics are defined as a standard of conduct valued by the financial sector. These can be expressed via concrete rules…
Code of Ethics and Standards of Professional Conduct
CFA Institute Professional Conduct Program and the Process for Enforcement of Code and Standards Violations of the CFA codes and standards are reviewed through the CFA Institute’s Professional Standards and Policy Committee (PSPC). This committee is authorized to conduct investigations…
Application of Conditional Expectations in Investments
The conditional expectation, in the context of investments, refers to the expected value of an investment given a certain set of real world events that are relevant to that particular investment. This means that analysts calculate and predict the expected…
Tree Diagram
A tree diagram is a visual representation of all possible future outcomes and the associated probabilities of a random variable. Tree diagrams are particularly useful when we have several possible outcomes. They can help you record all the possibilities in…
Economies and Diseconomies of Scale
Economies of Scale Economies of scale refer to the cost advantage brought about by an increase in the output of a product. Economies of scale arise due to the inverse relationship between the per-unit fixed cost and the quantity produced…
Perfect Competition, Monopolistic Competition, Oligopoly, and Pure Monopoly
Market structure can be defined as the characteristics of a market, which can either be competitive or organizational. Moreover, market structure outlines the nature of the competition and the pricing procedure in a market. Therefore, it describes the number of…
